Severstal’s scrap processing division sees positive financial results

Wednesday, 26 May 2010 16:50:52 (GMT+3)   |  

The Russian steel producer Severstal has announced that in the first quarter of the current year its scrap processing division increased the total value of its sales by more than 3.5 times year on year to $42.3 million, with EBITDA amounting to $2.377 million.

Accordingly, the growth in sales was achieved due to the increased volume of scrap shipped to consumers, including from the scrap division's new sites, with the price rate for ferrous scrap remaining at a stable high level. 

"These indicators show the levelling of the market, in part due to the seasonal increase in demand for raw materials, as well as due to the gradual return to pre-crisis price levels for some types of steel products," reads the company's statement.

As SteelOrbis previously reported, in Q1 2010 Severstal's scrap processing division increased its total sales volume by 40 percent year on year to 152,000 mt.


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