Severstal ups steel production 2% in Q3, but sales slump 5%
MOSCOW. Oct 11 (Interfax) - The Severstal Group increased steel production by 2% to 3.06 million tonnes in the third quarter of 2018 from 3 million tonnes in the previous quarter, the Russian steelmaker reported.
Severstal also increased hot metal production by 2% to 2.3 million tonnes in the third quarter.
The group's consolidated sales of steel products slumped 5% quarter-on-quarter to 2.71 million tonnes in the third quarter, due to short-term maintenance works at rolling-mill facilities. The share of sales on the domestic market grew to 65% from 64% in the second quarter.
The share of high value-added (HVA) products within the sales portfolio increased to 48% in Q3, from 46% in Q2, driven by an increase in sales volumes of color-coated and large diameter pipe (LDP) products. At the same time Severstal reduced semi-finished and hot-rolled coil (HRC) sales.
Severstal operating highlights for Q3 2018 ('000 tonnes):
|Production||Q3 2018||Q3 2018/Q2 2018, %||9M 2018||9M 2018/9M 2017, %|
|Crude Steel (Russian Steel)||3 064||2%||9 098||5%|
|Hot metal (Russian Steel)||2 307||2%||6 913||1%|
|Coking coal concentrate||953||27%||2 331||-5%|
|Iron ore pellets||2 554||-18%||8 054||3%|
|Iron ore concentrate||1 424||4%||4 080||31%|
|Total steel products (Consolidated)||2 712||-5%||8 420||4%|
|Total steel products (Russian Steel)||2 722||-5%||8 453||4%|
Iron ore pellet sales after the sale of finished goods in transit in Q2, carried over from the previous quarter.
LDP sales volumes grew as a result of higher production volumes of LDP and sale of finished goods at the Izhora Pipe Mill.
"Average selling prices for the majority of steel products grew substantially, between 6%-20%, for 9M 2018, reflecting global trends as well as sales and marketing initiatives run by Severstal," the company said.
Severstal is a vertically integrated steel company which has assets in Russia, Europe, Africa and Ukraine. The majority shareholder of the company is Alexei Mordashov, who owns 77.03%. The free float is 20.15% and there is a 2.82% treasury stake.