Severstal, one of the key integrated steel producers in Russia, plans to conduct serious maintenance at its largest blast furnace, which is a part of the steel complex at the holding’s Cherepovets SW. While the facility is idled for a long-terms repairs, Severstal is expected to keep up its minimal presence in the export segment for raw materials and steel products.
According to market sources, Severstal plans to handle a major overhaul at its blast furnace No. 5, which is the company’s main producing asset. The blast furnace accounts for around 35 percent of pig iron production at Cherepovetsk SW and approximate annual production of over 4 million mt. The maintenance is expected to take around three to four months and to begin in spring 2024, SteelOrbis has learned. It is worth mentioning that Severstal has been conducting preliminary repairs at some of the BF’s equipment, which could be done without halting operations and in order to shorten the period of the full stoppage. “The key target of the capital maintenance is to secure the solid and productive work of the upstream equipment, on which our output volume and product quality depend,” a Severstal official said in the company’s statement.
Currently, Severstal is focused on flats supply to the Russian domestic market and exports to the nearby CIS countries, which are either members of the EEU and so there is no export tax applicable (currently seven percent), or those who agree to accept an increased price. No slabs and BPI have been available for export from Severstal for several weeks now. Taking into account the planned long-term maintenance, Severstal is expected continue its minimal export activity in distant outlets, mainly due to the necessity to build up stocks of semi-finished products for the stoppage period.