Severstal reports Q3 & 9M 2018 operational results
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 & 9M 2018.
Q3 2018 GROUP HIGHLIGHTS
Hot metal output increased 2% in Q3 2018 to 2.30 mln tonnes (Q2 2018: 2.26 mln tonnes) compared with the previous quarter after short-term maintenance works at BF#4 and BF#5. Crude steel productionincreased 2% to 3.06 mln tonnes (Q2 2018: 3.00 mln tonnes) in line with pig iron production growth.
Consolidated steel product sales declined 5% to 2.71 mln tonnes in Q3 2018 compared with the previous quarter (Q2 2018: 2.84 mln tonnes), due to short-term maintenance works at rolling-mill facilities. The share of domestic sales remained high at 65% (Q2 2018: 64%).
The share of high value-added (HVA) products within the sales portfolio increased two ppts to 48% (Q2 2018: 46%), driven by an increase in sales volumes of colour-coated and large diameter pipe (LDP) products. At the same time Severstal reduced semi-finished and hot-rolled coil (HRC) sales.
Coking coal concentrate sales volumes from Vorkutaugol grew 27% largely driven by higher production volumes of “2ZH”, “GZHO” and “Concentrate K” grades following the long-wall repositionings at
Komsomolskaya and Vorkutinskaya mines in Q2.
Iron ore pellet sales decreased 18% to 2.55 mln tonnes (Q2 2018: 3.12 mln tonnes) after the realisation of a share of finished goods in transit in Q2, carried over from the previous quarter.
Iron ore concentrate sales increased to 1.42 mln tonnes (Q2 2018: 1.36 mln tonnes) driven by growth in production at the Olcon and Yakovlevskiy mines.
9M 2018 GROUP HIGHLIGHTS
Hot metal output increased 1% to 6.91 mln tonnes in 9M 2018 compared with the previous period (9M2017: 6.81 mln tonnes), due to fewer maintenance works in 9M 2018 and declining idle time at BF’s.
Crude steel production increased 5% to 9.10 mln tonnes (9M 2017: 8.64 mln tonnes), driven by an improvement in steel production efficiency following the launch of ladle furnace #2 in July 2017 as well
as higher production volumes from Balakovo mini-mill. Meanwhile, the Company continues its efficiency programmes aimed at decreasing raw material consumption ratios in the steel production process.
Consolidated steel product sales improved to 8.42 mln tonnes in 9M 2018 (9M 2017: 8.14 mln tonnes), primary reflecting growth in sales of semi-finished products compared with the previous year. The high share of HVA products remained flat at 46% in 9M 2018 (9M 2017: 46%).
Average selling prices for the majority of steel products grew substantially, between 6%-20%, for 9M 2018, reflecting global trends as well as sales and marketing initiatives run by Severstal.
The higher iron ore concentrate sales y-o-y for 9M 2018 partially reflects the consolidation of the Yakovlevskiy mine.
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