29.01.2016, 01:14
Severstal Reports Q4 2015 and FY 2015 Operational Results
OREANDA-NEWS. PAO Severstal announces its operational results for Q4 2015 and FY 2015.
Hot metal output remained largely unchanged q/q at 2.34 mln tonnes (Q3 2015: 2.31 mln tonnes). Crude steel production decreased 5% q/q to 2.75 mln tonnes (Q3 2015: 2.89 mln tonnes), partially as a result of seasonally weaker demand for long steel products and lower output at Balakovo mini-mill, which remains in ramp-up mode. Crude steel output at Cherepovets Steel Mill was impacted by scheduled short-term maintenance of converter #1, continuous casters #4 and #5 and the billet caster.
In addition, an 88% q/q increase in semi-finished product sales contributed to substantially reducing inventory levels for semi-finished products.
Reflecting a seasonal softness in the domestic market, the share of domestic steel products sales volumes in the sales mix decreased marginally to 64% (Q3 2015: 67%). The domestic market, which offers higher sales margins, remains a priority for the Company.
Consolidated sales of steel products decreased 13% q/q to 2.62 mln tonnes (Q3 2015: 3.00 mln) on the back of seasonally weaker steel consumption in Russia's construction sector. Meanwhile, despite the continuing slump in oil prices, healthy demand for steel products was maintained from the oil & gas sector.
The share of high value-added (HVA) products in the sales portfolio remained strong at 47% (Q3 2015: 47%) despite an 88% q/q increase in semi-finished product sales.
Coking coal concentrate sales volumes improved 1% q/q reflecting a substantial increase in ROM-coal output volumes in Q4 at Vorkutaugol following the completion of several scheduled long-wall repositionings at the beginning of the quarter.
Sales of iron ore concentrate decreased 15% q/q due to considerably lower external sales as a result of seasonally weaker demand. Meanwhile the company is producing captive iron ore concentrate efficiently more thanks to a focus on steady cost improvement and stripping ratio reduction.
Ongoing concerns regarding the prospects of the Chinese economy and the potential slowdown of the US economy have put pressure on the global metals & mining sector. At the same time, steel overcapacity continues to influence global steel prices which remained in decline over the quarter. In the domestic market, USD-denominated prices started to decline, reflecting both the RUB devaluation and initiatives by Russian steel producers to cut local prices in response to seasonally weaker demand.
Against this backdrop Severstal continues to demonstrate resilience thanks to a focus on cost efficiencies throughout the business, HVA products, improving customer care, and the geographical advantage of its assets for shifting sales between domestic and export markets.
Hot metal output remained largely unchanged q/q at 2.34 mln tonnes (Q3 2015: 2.31 mln tonnes). Crude steel production decreased 5% q/q to 2.75 mln tonnes (Q3 2015: 2.89 mln tonnes), partially as a result of seasonally weaker demand for long steel products and lower output at Balakovo mini-mill, which remains in ramp-up mode. Crude steel output at Cherepovets Steel Mill was impacted by scheduled short-term maintenance of converter #1, continuous casters #4 and #5 and the billet caster.
In addition, an 88% q/q increase in semi-finished product sales contributed to substantially reducing inventory levels for semi-finished products.
Reflecting a seasonal softness in the domestic market, the share of domestic steel products sales volumes in the sales mix decreased marginally to 64% (Q3 2015: 67%). The domestic market, which offers higher sales margins, remains a priority for the Company.
Consolidated sales of steel products decreased 13% q/q to 2.62 mln tonnes (Q3 2015: 3.00 mln) on the back of seasonally weaker steel consumption in Russia's construction sector. Meanwhile, despite the continuing slump in oil prices, healthy demand for steel products was maintained from the oil & gas sector.
The share of high value-added (HVA) products in the sales portfolio remained strong at 47% (Q3 2015: 47%) despite an 88% q/q increase in semi-finished product sales.
Coking coal concentrate sales volumes improved 1% q/q reflecting a substantial increase in ROM-coal output volumes in Q4 at Vorkutaugol following the completion of several scheduled long-wall repositionings at the beginning of the quarter.
Sales of iron ore concentrate decreased 15% q/q due to considerably lower external sales as a result of seasonally weaker demand. Meanwhile the company is producing captive iron ore concentrate efficiently more thanks to a focus on steady cost improvement and stripping ratio reduction.
Ongoing concerns regarding the prospects of the Chinese economy and the potential slowdown of the US economy have put pressure on the global metals & mining sector. At the same time, steel overcapacity continues to influence global steel prices which remained in decline over the quarter. In the domestic market, USD-denominated prices started to decline, reflecting both the RUB devaluation and initiatives by Russian steel producers to cut local prices in response to seasonally weaker demand.
Against this backdrop Severstal continues to demonstrate resilience thanks to a focus on cost efficiencies throughout the business, HVA products, improving customer care, and the geographical advantage of its assets for shifting sales between domestic and export markets.
Комментарии