Severstal reduces steel output 2% to 2.86 mln tonnes in Q1
MOSCOW. April 13 (Interfax) - Severstal reduced crude steel production by 2% quarter-on-quarter to 2.86 million tonnes in the first quarter of 2017, the Russian steelmaker reported.
Production was impacted by planned maintenance at converters Nos. 2 and 3 at the Cherepovets Steel Plant (CherMK), the company said.
Consolidated steel product sales slumped 9% quarter-on-quarter to 2.53 million tonnes. During the first quarter of 2017, following record sales volumes achieved in the previous quarter, the company replenished inventories to normal levels and accumulated finished good stocks for subsequent sale during 2017, as well as increased export sales in response to weaker domestic demand and lower activity from local traders, the company said in a press release.
As a result, the share of export sales grew to 42% up from 38% in the previous quarter.
Average selling prices for all steel products increased 8%-21% quarter-on-quarter, reflecting an upward adjustment in global steel prices, driven by high raw material benchmarks during Q1 2017.
The share of high value-added products within the sales portfolio increased to 44% from 40% in Q4 2016, led by increased cold-rolled, large diameter pipes and color-coated sales. In particular, following the launch of the four-stand cold rolling mill at full capacity, the company boosted cold-rolled coil sales 14% quarter-on-quarter to 320,200 tonnes. Sales of color-coated coil increased 6% to 84,400 tonnes.
Large diameter pipe sales increased 8% quarter-on-quarter to 68,400 tonnes, driven by higher sales from Izhora Pipe Mill for Gazprom projects.
Severstal operational results Q1 2017:
| Production, tonnes | Q1 2017 | % change on Q4 2016 | % change on Q1 2016 |
| Crude steel (Russian Steel) | 2 863 947 | (2%) | (2%) |
| Hot metal (Russian Steel) | 2 341 719 | (1%) | (1%) |
| Sales, tonnes | |||
| Coking coal concentrate | 710 622 | (11%) | (48%) |
| Iron ore pellets | 2 579 417 | (8%) | 7% |
| Iron ore concentrate | 802 939 | (13%) | (14%) |
| Total steel products (consolidated) | 2 530 181 | (9%) | 3% |
| Total steel products (Russian steel) | 2 540 351 | (9%) | 3% |
Russian Steel sales
| Sales tonnes | Q1 2017 | % change on Q4 2016 | % change on Q1 2016 |
| Steel products | 2 540 351 | (9%) | 3% |
| Semi-finished products | 117 042 | (55%) | (11%) |
| Rolled products | 2 016 107 | (4%) | 8% |
| Hot-rolled coil | 984 350 | (7%) | 2% |
| Hot-rolled plate | 193 491 | 2% | 18% |
| Cold-rolled coil | 320 186 | 14% | 57% |
| Galvanized and metallic coated coil | 117 517 | (4%) | 0% |
| Color coated coil | 84 404 | 6% | 2% |
| Long products | 316 159 | (14%) | (3%) |
| Downstream products | 407 202 | (7%) | (13%) |
| Metalware products | 144 511 | (4%) | (2%) |
| Large diameter pipes | 68 367 | 8% | (40%) |
| Other tubes, pipes, formed shapes | 194 324 | (13%) | (6%) |
| Sales price, $/tonne | Q1 2017 | % change on Q4 2016 | % change on Q1 2016 |
| Semi-finished products | 374 | 18% | 67% |
| Hot-rolled coil | 481 | 14% | 89% |
| Hot-rolled plate | 569 | 11% | 61% |
| Cold-rolled coil | 602 | 16% | 65% |
| Galvanized and metallic coated coil | 708 | 11% | 61% |
| Color coated coil | 908 | 9% | 54% |
| Long products | 435 | 11% | 82% |
| Metalware products | 899 | 8% | 40% |