OREANDA-NEWS. Severstal Resources announces its operational results for Q4 2015 and FY 2015.

Coking coal concentrate sales volumes increased 1% q/q to 1.48 mln tonnes (Q3 2015: 1.46 mln tonnes) reflecting a substantial increase in ROM-coal output volumes in Q4 at Vorkutaugol with completion of the scheduled long-wall repositionings at several mines at the beginning of Q4.

Steam coal sales at Vorkutaugol increased 17% q/q on the back of improved demand from domestic consumers during the heating season.

Iron ore pellet sales decreased 1% q/q to 2.70 mln tonnes (Q3 2015: 2.73 mln tonnes) reflecting both lower internal procurement and seasonally weaker demand.

Iron ore concentrate sales volumes decreased 15% q/q to 0.96 mln tonnes (Q3 2015: 1.13 mln tonnes) due to considerably lower external sales resulting from seasonally weaker demand. Internal consumption was also lower due to increased use of higher Fe content olivine pellets, which require lower volumes of sinter.

Average coking coal concentrate selling prices increased 11% q/q despite a 4% q/q decline of hard coking coal benchmark contract prices (Australia, FOB) in Q4 and an 8% q/q decline of global coking coal spot prices. This is primarily a function of an upward revision of coking coal contract prices in the domestic market fully offsetting the RUB devaluation of 5% during the quarter. Additionally, an increase in the share of hard coking coal within the sales mix positively impacted the average selling price.

Average USD-denominated selling prices of iron ore concentrate at Olkon increased 3% q/q against a 15% q/q decline in the global iron ore benchmark (China, CFR). This was largely driven by a marginal increase in RUB- denominated prices offsetting the RUB devaluation during the period. Prices for iron ore pellets at Karelsky Okatysh were less resilient (declining 4% q/q) due to the geographical structure of sales.