Severstal expects to end 2020 on a high note, driven by a solid outlook on benchmark steel prices and a lower-than-expected 6pc drop in Russian steel consumption this year, on an annual basis.

 

The Russian steelmaker and iron ore provider remains optimistic about its market position due to its lower costs but is concerned over the uncertainty posed by the COVID-19 pandemic and a potential second outbreak of the virus, which could lead to further shutdowns. 

 

In Q3 2020, Severstal benefited from recovering global and Russian steel demand and higher demand from China for iron ore.

 

For the first nine months ended September 30, 2020, Severstal’s revenue declined by 17pc to $5.2bn compared to $6.3bn in the same period last year. The firm attributed the drop to lower shipments and weaker steel product prices due to the pandemic. The Group’s EBITDA fell by 22.3pc to $1.7bn in January-September 2020 from $2.2bn in the same nine-months last year.

 

Severstal’s revenue increased by 17.9pc to $1.9bn in Q3 2020 from $1.6bn in the preceding quarter and its EBITDA increased by 30.9pc to $656mn from $501mn during the same period under comparison.

 

Severstal’s crude steel production dropped by 6pc to 8.5mn mt in the first nine-months in 2020 against the same period a year ago. Davis Index previously reported operational data on Oct 9. 

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