Severstal boosts steel production 3.5%, sales 3% in Q1
MOSCOW. April 12 (Interfax) - Severstal increased steel production by 3.5% quarter-on-quarter to 3.044 million tonnes in the first quarter of 2019, the Russian steelmaker reported.
The company's consolidated sales of steel products rose by 3% quarter-on-quarter to 2.83 million tonnes in the first quarter.
Steel production in the first quarter was little changed from 3.033 million tonnes in the same period a year earlier, while sales slumped 1% from 2.864 million tonnes in the first quarter of 2018.
The share of high value-added (HVA) products within the sales portfolio remained flat at 44%, driven by a decline in sales of semi-finished products (-23%), which was offset by higher sales of galvanized (+14%), color-coated (+5%) and hot rolled thick plate (+11%).
Average selling prices for the majority of steel products declined in Q1 2019 in line with global benchmarks. The average sale price of h/r sheet fell 6% quarter-on-quarter in Q1 to $494 a tonne, semis - 5% to $423 a tonne, plate - 7% told Interfax $635 a tonne and c/r sheet - 3% to $592 a tonne.
Severstal operating highlights in Q1 2019, '000 tonnes:
| Production | |||||
| Q1 2019 | Q4 2018 | Q1 2019/Q4 2018, % | Q1 2018 | Q1 2019/Q1 2018, % | |
| Crude Steel (Russian Steel) | 3 044 | 2 941 | 4% | 3 033 | 0% |
| Hot metal (Russian Steel) | 2 363 | 2 233 | 6% | 2 347 | 1% |
| Sales | |||||
| Coking coal concentrate | 1 031 | 1 043 | -1% | 628 | 64% |
| Iron ore pellets | 2 832 | 2 943 | -4% | 2 377 | 19% |
| Iron ore concentrate | 1 301 | 1 430 | -9% | 1 292 | 1% |
| Total steel products (consolidated) | 2 832 | 2 755 | 3% | 2 864 | -1% |
| Total steel products (Russian Steel)* | 2 843 | 2 766 | 3% | 2 874 | -1% |
* Including inter-company sales
Large-diameter pipe sales volumes declined 9% q/q to 97,000 tonnes due to specific factors with the product range at the Izhora Pipe Mill, and fell 18% year-on-year.