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Severstal: Steel industry needs to prepare for slowing China

The global steel industry should prepare for slowing China growth in the next few years, Alexey Kulichenko, the chief financial officer of Russia's second-largest steel producer Severstal told CNBC on Monday.

"Today we see growth still strong, but we really don't see it continuing for another decade," Kulichenko said.

Oversupply in global markets meant the situation for the steel industry was really challenging, he added, and as a result the company was looking at cutting costs and reducing capital expenditure to boost free cash flow.

Severstal posted a net loss of $44 million in the second quarter.

"We really think overcapacity in the industry today is significant and we think it will take a few years for the situation to get balanced."