Evraz Group: Russia steel demand can grow

MOSCOW, Sept 2 (Reuters) - Russian domestic demand for steel, boosted by an acceleration of government-funded construction projects, remains 15-20 percent below pre-crisis levels and has room to grow, No. 2 steelmaker Evraz said.

"There is potential for continued growth, because, in volume terms, the pre-crisis level has not been reached. There is another 15-20 percent to go," CEO Alexander Frolov told a conference call.

He said volumes were up 30 percent in the first half of the year compared to the year-ago period. The company reported a 38 percent increase in first half sales and a 147 percent increase in core earnings on Thursday [ID:nLDE6810BH].

Frolov said there would be no dividend for the year. The company must repay $1.1 billion in the next 12 months, Chief Financial Officer Giacomo Barzini told the call. It will refinance the full amount, although the company has $700 million in cash, he added. (Reporting by Polina Devitt; writing by Melissa Akin)