Severstal reports Q1 2020 operatioal results

April 14, 2020

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 2020.

Q1 2020 GROUP HIGHLIGHTS

Hot metal output increased 2% q/q in Q1 2020 to 2.41 mln tonnes (Q4 2019:
2.36 mln tonnes) following the completion of short-term maintenance works at
blast furnace facilities in Q4 2019.
Crude steel production increased 5% to 2.85 mln tonnes (Q4 2019: 2.71 mln
tonnes), driven by an increased number of castings in Q1 2020 and the
completion of short-term maintenance works at steelmaking facilities in Q4
2019.
Consolidated steel product sales increased 4% q/q to 2.75 mln tonnes in Q1
2020 (Q4 2019: 2.65 mln tonnes).
The Company increased its share of steel export shipments to 45% (Q4 2019:
41%) responding to a seasonal slowdown in domestic demand.
The share of high value-added (HVA) products within the sales portfolio
amounted to 42% (Q4 2019: 45%), due to increased shipments of hot rolled coil,
long steel products and decreased sales of LDPs.
Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q to
0.95 mln tonnes as a result of a decrease in run-of-mine production affected by
long wall repositioning at the Komsomolskaya mine in Q1 2020.
Iron ore pellet sales grew 6% to 2.97 mln tonnes (Q4 2019: 2.81 mln tonnes)
reflecting stronger demand q/q.
Iron ore concentrate sales volumes declined 8% to 1.47 mln tonnes (Q4 2019:
1.60 mln tonnes) impacted by a planned decline in production at Olcon.