Russian vertically-integrated steelmaker Severstal hopes it will manage to maintain full capacity utilisation in the event of a second wave of the Covid-19 pandemic, it confirms to Kallanish.

"We hope that we will be able to continue to maintain stability in any development of events," says chief executive Alexsander Shevelev. “It is clear that a pandemic is a challenge for any company and industry. But it should be noted that the Russian metallurgical industry in general and Severstal in particular in the first wave demonstrated greater stability compared to foreign manufacturers.”

Despite the sharp drop in global prices in April-May, Severstal's weighted average prices fell by only -4% on-year. This was due to the high share of premium products, flexible sales solutions, competent export policy, as well as transformational initiatives, Shevelev claims.

“I think we are well prepared now,” he continues. “The first is due to the fact that two years ago the company launched a digital transformation programme and a transition to work in cross-functional teams, which means employees from different regions had to interact a lot remotely before the pandemic.” CherMK staff, for example, have mastered the online commissioning of equipment, Shevelev observes.

Lower steel sales volumes and unfavourable raw materials price dynamics decreased Severstal's revenue in the first half of 2020 (see Kallanish passim). The Russian steelmaker foresees domestic steel demand partially recovering in the second half.

Severstal's output of crude steel and steel products decreased in the second quarter to 2.81 million tonnes, down by -2% on-year, following short-term upgrades.