Russian steelmaker Severstal has announced its operational results for the fourth quarter and the full year of 2015. Accordingly, Severstal's crude steel production in the fourth quarter decreased by five percent to 2.75 million mt, while its hot metal production increased by one percent to 2.34 million mt, both quarter on quarter. Steel production in the given quarter was impacted by seasonally weaker demand for long steel products and lower output at the Balakovo mini-mill, which remains in ramp-up mode. In the fourth quarter last year, Severstal's consolidated steel product sales decreased by 13 percent quarter on quarter to 2.63 million mt, while the iron ore concentrate sales volume of Severstal Resources declined by 15 percent quarter on quarter to 959,895 mt.
In 2015, Severstal registered a one percent year-on-year growth in crude steel production to 11.45 million mt, while the company's hot metal production increased by two percent year on year to 9.24 million mt.
Also in 2015, Severstal's consolidated steel product sales rose by four percent year on year to 10.82 million mt. In the given year, the iron ore concentrate sales volume of Severstal Resources decreased by six percent year on year to 4.14 million mt.
Severstal stated that in the domestic market US-denominated prices started to decline, reflecting both the loss of strength of the ruble and initiatives by Russian steel producers to cut local prices in response to seasonally weaker demand. Against this backdrop, Severstal stated that it continues to demonstrate resilience thanks to a focus on cost efficiencies throughout its business.