April 12, 2019
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 Q1 2019.
Q1 2019 GROUP HIGHLIGHTS
- Hot metal output increased 6% q/q in Q1 2019 to 2.36 mln tonnes (Q4 2018: 2.23 mln tonnes) following short-term maintenance works at BF#2 in the previous quarter. Crude steel production grew to 3.04 mln tonnes (Q4 2018: 2.94 mln tonnes) reflecting an increase in pig iron production and production growth of EAF billets.
- Consolidated steel product sales increased 3% q/q to 2.83 mln tonnes in Q1 2019 (Q4 2018: 2.76 mln tonnes), following short-term maintenance works at rolling-mill facilities in the previous quarter and an increase in productivity of aggregates. The share of domestic sales rose to 65% due to their increased attractiveness of domestic sales (Q4 2018: 62%).
- The share of high value-added (HVA) products within the sales portfolio remained flat at 44% (Q4 2018: 44%), driven by a decline in sales of semi-finished products, which was offset by higher sales of galvanised, colour coated and hot rolled thick plate.
- Coking coal concentrate sales volumes from Vorkutaugol declined 1% due to long-wall repositionings at Vorgashorskaya, Zapolyarnaya and Komsomolskaya mines, but remained at historically high levels reflecting the high production rate.
- Iron ore pellet sales declined 4% to 2.83 mln tonnes (Q4 2018: 2.94 mln tonnes) as a result of lower production volumes in Q1 2019 and a stock sell-off in the previous quarter.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
|
Production, thousands of tonnes |
Q1 2019 |
Q4 2018 |
Change, % |
Q1 2019 |
Q1 2018 |
Change, % |
|
Crude Steel (Russian Steel) |
3,044 |
2,941 |
4% |
3,044 |
3,033 |
0% |
|
Hot metal (Russian Steel) |
2,363 |
2,233 |
6% |
2,363 |
2,347 |
1% |
|
|
|
|
|
|
|
|
|
Sales volumes, thousands of tonnes |
Q1 2019 |
Q4 2018 |
Change, % |
Q1 2019 |
Q1 2018 |
Change, % |
|
Coking coal concentrate |
1,031 |
1,043 |
(1%) |
1,031 |
628 |
64% |
|
Iron ore pellets |
2,832 |
2,943 |
(4%) |
2,832 |
2,377 |
19% |
|
Iron ore concentrate |
1,301 |
1,430 |
(9%) |
1,301 |
1,292 |
1% |
|
Total steel products (Consolidated) |
2,832 |
2,755 |
3% |
2,832 |
2,864 |
(1%) |
|
Total steel products (Russian Steel) |
2,843 |
2,766 |
3% |
2,843 |
2,874 |
(1%) |
|
High value added steel products, % |
Q1 2019 |
Q4 2018 |
Change, % |
Q1 2019 |
Q1 2018 |
Change, % |
|
Severstal (Consolidated) |
44% |
44% |
(0 ppts) |
44% |
45% |
(1 ppts) |
|
Severstal Russian Steel |
44% |
44% |
(0 ppts) |
44% |
45% |
(1 ppts) |
SEVERSTAL’S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
|
Sales volumes, thousands of tonnes |
Q1 2019 |
Q4 2018 |
Change, % |
Q1 2019 |
Q1 2018 |
Change, % |
|
|
Coal: |
532 |
544 |
(2%) |
532 |
404 |
32% |
|
|
Coking coal concentrate |
157 |
169 |
(7%) |
157 |
46 |
n/a |
|
|
Steam coal |
375 |
375 |
0% |
375 |
358 |
5% |
|
|
Iron ore: |
1,656 |
2,128 |
(22%) |
1,656 |
1,441 |
15% |
|
|
Iron ore pellets |
1,302 |
1,871 |
(30%) |
1,302 |
1,188 |
10% |
|
|
Iron ore concentrate |
354 |
257 |
38% |
354 |
253 |
40% |
|
|
Semi-finished products |
121 |
157 |
(23%) |
121 |
256 |
(53%) |
|
|
Rolled products: |
2,311 |
2,185 |
6% |
2,311 |
2,166 |
7% |
|
|
Hot-rolled coil |
1,102 |
1,017 |
8% |
1,102 |
963 |
14% |
|
|
Hot-rolled plate |
233 |
210 |
11% |
233 |
198 |
18% |
|
|
Cold-rolled coil |
275 |
296 |
(7%) |
275 |
389 |
(29%) |
|
|
Galvanised and metallic coated coil |
237 |
207 |
14% |
237 |
198 |
20% |
|
|
Colour coated coil |
102 |
97 |
5% |
102 |
67 |
52% |
|
|
Long products |
362 |
358 |
1% |
362 |
351 |
3% |
|
|
Downstream products: |
400 |
413 |
(3%) |
400 |
442 |
(10%) |
|
|
Metalware products |
126 |
136 |
(7%) |
126 |
128 |
(2%) |
|
|
Large diameter pipes |
97 |
107 |
(9%) |
97 |
119 |
(18%) |
|
|
Other tubes, pipes, formed shapes |
177 |
170 |
4% |
177 |
195 |
(9%) |
|
Notes: All production data is reported in thousands of tonnes;
Sales prices are stated on EXW basis;
Segmental data includes intercompany sales;
Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings;
Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.
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