Severstal lowered its crude steel production by 2pc in 2019 to 11.85mn mt compared to the previous year, while benefiting from improved efficiency and higher quality raw materials to increase its hot metal output by 4pc to 9.49mn mt.

 

In Q4 2019, the Russian company reported a 10pc decline in its crude steel production to 2.71mn mt, from 3.03mn mt in Q3 2019, due to maintenance work at its BOF and EAF facilities. Lower EAF production in Q4 followed the Balakovo minimill sale in Q3-2019. Hot metal output declined by 4pc in Q4 to 2.36mn mt against 2.46mn mt a quarter earlier.

 

Coking coal concentrate sales volumes at Vorkutaugols surged by 38pc to 4.7mn mt in Q4 2019 compared to Q4 2018, while iron ore pellet sales grew by 14pc to 2.81mn mt in Q4 compared to Q3. Iron ore concentrate sales volumes declined by 17pc to 1.60mn mt compared to Q3 2019 because of decreasing iron ore volumes at Karelsky. However, compared to the same quarter in 2018, iron ore sales volumes rose by 14pc to 6.26mn mt.
 

Compared to Q4 2018, total steel products in Q4 2019 were relatively unchanged at 11.2mn mt, however, semi-finished products declined by 30pc to 490,000mt, rolled products increased by 2pc to 8.93mn mt, and downstream products, such as pipes, decreased by 2pc to 1.76mn mt. 

 

Sales prices decreased in 2019 across all of Severstal’s finished products, with semi-finished declining by 14pc at $399/mt compared to 2018, and by 13pc during Q4 alone to $362/mt. Hot rolled coil decreased by 11pc to $491/mt in 2019 compared to the previous year.

 

The company grew its share of steel export shipments to 41pc in Q4 2019 from 33pc the previous quarter because of weaker seasonal domestic demand.

 

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