Russian steel demand to drop nearly 25 pct-RenCap

NEW YORK, June 24 (Reuters) - Russian steel consumption will fall by some 10 million tonnes, or nearly a quarter, this year in the face of global economic downturn and is not expected to bounce back to levels seen in 2008 before 2012, an executive from Russia's largest investment bank said on Wednesday.

"Consumption markets are still pretty much at a standstill," Rob Edwards, managing director, metals and mining at Renaissance Capital told a steel conference organized by American Metal Market (AMM)

Edwards said Russian steel consumption this year would fall to 32 million tonnes from last year's 42 million tonnes, with production totalling to 52 million tonnes in 2009.

"We don't see consumption going back up to normal levels of around 44 million tonnes annually before 2012," Edwards said, adding the tightness in the bank lending continued in Russia, pressuring project finance in the construction sector.

Global economic downturn has knocked down steel demand as consumption in key consuming sectors such as automotive and construction shrank significantly, forcing steelmakers to reduce output. (Reporting by Humeyra Pamuk, Editing by Marguerita Choy)