According to Mr Sergei Kuznetsov CFO of OAO Severstal has halved its steel output since September due to reduced demand, but it expects global demand to return to a more normal level in two to three months.

He said that steel prices have already reached the bottom and that demand for steel will bottom out shortly, as consumers" stockpiles of steel dry up.

He reiterated that the company is cutting investment and that "certain layoffs are inevitable."

Mr Kuznetsov said that Severstal feels comfortable with its exposure to Ford Motor Company and General Motors Corporation and has no unpaid receivables or unresolved issues with the two Russian struggling car producers OAO GAZ Group and AvtoVAZ.