Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Severstal increased its internal iron ore consumption to 90pc in 2020, up 13pc from 2019 and over 20pc against 2018 usage. 


The Russian steelmaker said in a media statement that its production of higher iron ore grades led to an increase in internal consumption. In 2020, iron ore concentrate from Severstal’s Olenegorsk GOK increased to 69pc, while its iron ore pellets output improved to 66.5pc. 


Yakovlevsky GOK will reach a production volume of 5mn mt by 2023. The Karelsky Okatysh site will increase to 12mn mt of finished products annually with the increase in iron ore pellet production.


Alexander Shevelev, chief executive officer of Severstal, noted that the company’s self-sufficiency for iron ore was at over 130pc giving Severstal many options to retain more inventories within the integrated mining and steel mills. The steelmaker’s new blast furnace capacity also allows for the optimization of pellets, with reduced reliance on expensive raw material like coal. Severstal said it would continue to sell these materials to third-parties depending on market conditions. 


In line with environmental initiatives, PJSC Severstal is also modernizing the treatment facilities at its Vorkutaugol mining operation by early 2021. Under this project pollutants emitted by the coal mine are expected to decline by 1.7mn mt. Burning waste dumps are also slated for removal. The coal mine is part of the integrated supply chain system that supplies to Severstal’s steel units in Russia. 


Leave a Reply

Your email address will not be published.