Severstal: Hot metal output declined q/q in Q2 2019 to 2.30 mln tonnes

by David Fleschen

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its operational results for Q2 2019.

Q2 2019 GROUP HIGHLIGHTS

  • Hot metal output declined q/q in Q2 2019 to 2.30 mln tonnes (Q1 2019: 2.36 mln tonnes) due to short-term maintenance works at BF#1, BF#4 and BF#5. Crude steel production remained almost flat at 3.06 mln tonnes (Q1 2019: 3.04 mln tonnes) mainly reflecting EAF steel output growth.
  • Consolidated steel product sales remained unchanged q/q at 2.84 mln tonnes in Q2 2019 (Q1 2019: 2.83 mln tonnes). The share of domestic sales rose to 70% due to the increased attractiveness of domestic sales (Q1 2019: 65%).
  • The share of high value-added (HVA) products within the sales portfolio increased 2 ppts to 46% (Q1 2019: 44%), reflecting a decline in sales of semi-finished, hot rolled coil products and higher sales of galvanised, colour-coated and large diameter pipes (LDPs).
  • Coking coal concentrate sales volumes from Vorkutaugol declined 7% due to planned short-term modernisation works at coal beneficiation facilities in Q2 2019. Meanwhile run-of-mine (ROM) coal production at Vorkutaugol in Q2 2019 increased 13% q/q.
  • Iron ore pellet sales increased 2% to 2.90 mln tonnes (Q1 2019: 2.83 mln tonnes) due to seasonal factors despite a q/q decline in production.
  • Iron ore concentrate sales volumes increased 10% to 1.43 mln tonnes (Q1 2019: 1.30 mln tonnes) following production growth.

H1 2019 GROUP HIGHLIGHTS

  • Hot metal output increased 1% y/y in H1 2019 to 4.67 mln tonnes (H1 2018: 4.61 mln tonnes) driven by the improved efficiency of maintenance works and the higher quality of raw materials. Crude steel production increased to 6.10 mln tonnes (H1 2018: 6.03 mln tonnes) mainly reflecting EAF steel output growth and higher productivity of aggregates.
  • Coking coal concentrate sales volumes from Vorkutaugol increased 44% y/y driven by coal production growth. Iron ore concentrate sales volumes increased 3% y/y to 2.73 mln tonnes (H1 2018: 2.66 mln tonnes) mainly reflecting ramp-up of the Yakovlevskiy mine.
  • The share of HVA products remained high in H1 2019 at 45% which primarily reflects higher sales of galvanised and colour-coated sales following the launch of new product lines, which reached their full utilisation rates in Q1 2019, as well as higher sales of hot rolled thick plate y/y.

Source: Severstal, Photo: Fotolia

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