Russian steelmaker Severstal has announced its operational results for the first quarter of this year. Accordingly, Severstal's crude steel production in the first quarter increased by two percent to 2.96 million mt, while its hot metal production declined by one percent to 2.31 million mt, both quarter on quarter.
In the first quarter, Severstal's Russian Steel division's total steel product sales declined by four percent compared to the fourth quarter last year, but increased by four percent on year-on-year basis to 2.56 million mt.
In the given quarter, Severstal's Russian Steel division recorded an eight percent quarter-on-quarter increase in sales volumes of semi-finished products due to strong domestic demand. HRC sales volumes increased by 13 percent quarter on quarter, reflecting an uptick in profitability for HRC export deliveries as well as a low base effect as production in the fourth quarter last year was impacted by the upgrade of the HR Mill-2000. Notwithstanding a decrease in sales volumes of cold rolled coils (down 13 percent quarter on quarter), galvanized and metallic coated coils (down 17 percent quarter on quarter) and color coated coils (down 24 percent quarter on quarter), all the rolling facilities at CherMK ran at almost full capacity in the first quarter of the current year.
In the quarter in question, sales of large diameter (LD) pipes decreased by 19 percent quarter on quarter as a result of short-term scheduled maintenance at Izhora Pipe Mill. Nevertheless, Severstal continued supplying LD pipes for the Southern Corridor and Bovanenkovo-Ukhta pipelines, which resulted in a high utilization rate at Izhora Pipe Mill.
In the first quarter this year, Severstal's iron ore pellet sales declined by six percent quarter on quarter to 2.58 million mt, while its iron ore concentrate sales volumes remained broadly flat quarter on quarter at 984,300 mt. Coal sales volumes decreased by nine percent quarter on quarter to 1.73 million mt.