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Kallanish Kallanish

Knowledge matters Knowledge matters

June, 20th 2019

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APR 12

Severstal ramps up steel output in first quarter


Severstal ramped up output of steel in the first quarter of 2019, but feedstock sales volumes have notched down on quarter-on-quarter, the company says. 

The steelmaker produced 3.04 million tonnes of crude steel in Q1, 4% up on-quarter and flat year-on-year, reflecting higher pig iron and electric arc furnace-produced billet output increases, Kallanish notes. Consolidated steel product sales volumes grew 3% on-quarter to 2.83mt, but were -1% down on-year, following short-term maintenance on rolling facilities in Q418, the company says. 

The share of sales to the domestic market rose 3 percentage points on-quarter to 65%, with higher value added (HVA) products sales share flat at 44%. This was on the back of the decline of semi-finished products sales offset by higher sales of coated flat and heavy plate products. Sales of semis have fallen by -23% on-quarter and -53% on-year to 121,000t, along with cold-rolled coil, which declined -7% on-quarter and -29% on-year to 275,000t in Q1.  

Meanwhile, the company's overal feedstock sales have all notched down, with coking coal sales declining -1% on-quarter to 1.03mt, due to long-wall repositioning at its three mines, although they increased by 64% on-year. Iron ore pellets sales volumes also declined by -4% to 2.83mt on lower output and stock sell-off in a previous quarter. This was still 19% higher however than in Q118. Iron ore concentrate sales also fell on-quarter, by -9% to 1.3mt, which was 1% up on-year.  

Merchant sales of washed coking coal declined -7% on-quarter to 157,000t and iron ore pellets by -30% to 1.3mt, but iron ore concentrate sales increased by 38% on-quarter to 354,000t.

Average selling prices all declined in Q119, Severstal confirms. Semis have lost -5% on-quarter and -1% on-year at $423/t, hot rolled coil lost -6% on-quarter and -10% on-year at $494/t, and cold-rolled lost -3% on-quarter and 5% on-year at $592/t.