Russian steelmaker Severstal has announced its operational results for the first quarter of this year. Accordingly, Severstal's crude steel production in the first quarter increased by six percent quarter on quarter to 2.91 million mt.
In the first quarter, Severstal's Russian Steel division's total steel product sales declined by six percent compared to the fourth quarter of last year to 2.46 million mt, due to seasonal factors and the scheduled four-stand cold rolling mill upgrade at CherMK, which is expected to last until the end of the second quarter of this year.
In the first quarter this year, Severstal's Russian Steel division recorded a 31 percent quarter-on-quarter decrease in sales volumes of semi-finished steel products, due to the lower profitability of export deliveries at the beginning of the year. The hot rolled coil (HRC) sales volume increased by four percent quarter on quarter. Meanwhile, the sales volume of cold rolled coil (CRC) decreased by 38 percent, the galvanized and metallic coated coil sales volume went down by 20 percent, and the sales volume of color coated coil fell by 18 percent, all compared to the fourth quarter of last year.
In the first quarter, sales of large diameter (LD) pipes decreased by 12 percent quarter on quarter, mostly reflecting changes in the sales mix. In the given quarter, the company’s Izhora Pipe Mill mainly supplied pipe for maintenance projects at Transneft and Gazprom, Russia's main oil and gas companies. At the same time, following recent tender results, 140,000 mt of LD pipes will be delivered for Gazprom's major gas transmission projects, Power of Siberia and Ukhta-Torzhok-2.
In the first quarter this year, Severstal's iron ore pellet sales declined by 11 percent quarter on quarter to 2.41 million mt, while its iron ore concentrate sales volumes fell by two percent quarter on quarter to 937,772 mt. Coal sales volumes decreased by four percent quarter on quarter to 2.07 million mt.