OAO Severstal one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its output for Q3 2013 and 9-months 2013.
● Crude steel production was in line with the previous quarter at 4.0Mt (Q2 2013: 4.0Mt);
● Crude steel production at the Russian Steel Division increased 2% Q-on-Q to 2.8Mt;
● Consolidated sales of steel products decreased by 4% Q-on-Q against a backdrop of slightly weaker domestic and export markets;
● The share of high value-added products in the sales portfolio increased by 1% to 46%;
● Steel facilities ran at near to full capacity in Q3.
Severstal Russian Steel
Severstal Russian Steel (RSD) with its main works at Cherepovets recorded steel products sales of 2.6Mt, 6% lower Q-on-Q due to weaker demand and lower selling prices; only galvanized, metallic coated coils, small diameter pipes and formed shapes saw strong demand from domestic customers and sales of those products increased by 8% Q-on-Q.
The product mix improved with the share of high value-added products in the sales portfolio increasing from 45% to 46% on a substantial decrease in sales of semi-finished products. But, sales of large diameter pipes declined by 27% Q-on-Q on lower production volumes largely due to scheduled repair works at the Izhora Pipe Mill.
Prices for all steel products decreased in Q3 by between 1% and 18% Q-on-Q (depending on the product) reflecting a weaker pricing environment both in the Russian and export markets in June and July 2013. Nevertheless, RSD was able to increase sales prices for key steel products on a number of occasions as Q3 progressed.
Severstal North America
Severstal North America which comprises a flat products integrated plant at Dearborn and a specials steels electric arc plant, at Columbus increased Q-on-Q sales with rolled products sales of 1.2Mt in Q3 (Q2 2013: 1.17Mt)
Steel-making facilities ran at approximately 96% of capacity in Q3 2013 and at 95% for the first 9 months of 2013. In N America, the share of high value-added products in the sales portfolio increased to 46% (Q2 2013: 44%). Prices for steel products increased by 2% in Q3 against Q2 reflecting sustainable growth in the US economy and good prospects for the US steel market.
Production by product type can be downloaded from the link below.