October 11, 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 Q3 2019.
Q3 2019 GROUP HIGHLIGHTS
- Hot metal output increased 7% q/q in Q3 2019 to 2.46 mln tonnes (Q2 2019:
2.30 mln tonnes) following short-term maintenance works at BF#1, BF#4 and BF#5
in the previous quarter. Crude steel production declined 1% to 3.03 mln tonnes
(Q2 2019: 3.06 mln tonnes) mainly reflecting a decline in EAF steel output
following the sale of Balakovo mini-mill in July 2019.
- Consolidated steel product sales remained flat q/q at 2.83 mln tonnes in Q3
2019 (Q2 2019: 2.83 mln tonnes). The share of domestic sales remained at
historically high levels of 67% due to their continued attractiveness (Q2 2019:
- The share of high value-added (HVA) products within the sales portfolio
amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of galvanised,
colour-coated and cold-rolled products due to short-term maintenance works at
one of the pickling lines. This was offset by higher sales volumes of thick
plate and lower sales of long products.
- Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q in
line with the 42% increase q/q in production of run-of-mine coal.
- Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln
tonnes) reflecting higher production of iron ore concentrate at Karelsky
- Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2
2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky
9M 2019 GROUP HIGHLIGHTS
- Hot metal output increased 3% y/y to 7.13 mln tonnes in 9M 2019 (9M 2018:
6.91 mln tonnes) driven by improved maintenance works efficiency and higher
quality of raw materials. Crude steel production remained almost flat at 9.13
mln tonnes (9M 2018: 9.10 mln tonnes), predominantly reflecting higher
aggregate productivity levels, which were offset by lower EAF production in Q3
following the sale of Balakovo mini-mill.
- Coking coal concentrate sales volumes from Vorkutaugol increased 43% y/y,
driven by growth in coal production. Iron ore concentrate sales volumes
increased 14% y/y to 4.66 mln tonnes (9M 2018: 4.08 mln tonnes) predominantly
reflecting production volumes growth at Karelsky Okatysh.
- The share of HVA products remained high at 45% in 9M 2019, primarily
reflecting higher sales of galvanised and colour-coated products following the
launch of new product lines, which reached their full utilisation rates in Q1
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
SEVERSTAL’S CONSOLIDATED SALES (NET OF INTERCOMPANY
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