29.01.2016, 01:18
RSD Reports Q4 2015 and FY 2015 Operational Results
OREANDA-NEWS. Severstal Russian Steel ('RSD') announces its operational results for Q4 2015 and FY 2015.
RSD steel product sales decreased by 13% q/q to 2.63 mln tonnes due to seasonal factors and short-term scheduled maintenance at the hot-rolling shop at Cherepovets Steel Mill. This resulted in both a 16% q/q decline in hot-rolled coil sales and a 88% q/q uptick in semi-finished products sales.
The share of HVA products within the sales mix remained at 47%, despite seasonally lower demand for galvanised and metallic coated coil and color coated coil (sales volumes decreased 27% q/q and 31% q/q).
Despite seasonally weaker demand, the share of domestic sales volumes within the sales mix decreased only marginally to 64% (Q3 2015: 67%), reflecting Severstal's ability to efficiently reallocate sales volumes between markets and target higher margin domestic sales.
Long product sales volumes decreased 31% q/q reflecting subdued demand for long steel products due to seasonality and scheduled maintenance of the billet caster at Cherepovets Steel Mill.
Despite a marginal 1% q/q decline in large diameter pipe (LDP) sales volumes, Izhora Pipe Mill was operating at full capacity in Q4 2015. Severstal continued supplying LDPs to Gazprom for the Power of Siberia and Ukhta-Torzhok projects during the quarter. Moreover, some volumes were delivered to Transneft and Gazprom for maintenance projects.
Reflecting the continuing downward adjustment in global steel prices and a seasonally soft domestic market, which resulted in Russian steel producers reducing their prices, USD-denominated average steel prices for rolled products at RSD decreased q/q for almost all products (except for LDPs). Ongoing RUB devaluation weighed additional pressure on USD-denominated prices.
RSD steel product sales decreased by 13% q/q to 2.63 mln tonnes due to seasonal factors and short-term scheduled maintenance at the hot-rolling shop at Cherepovets Steel Mill. This resulted in both a 16% q/q decline in hot-rolled coil sales and a 88% q/q uptick in semi-finished products sales.
The share of HVA products within the sales mix remained at 47%, despite seasonally lower demand for galvanised and metallic coated coil and color coated coil (sales volumes decreased 27% q/q and 31% q/q).
Despite seasonally weaker demand, the share of domestic sales volumes within the sales mix decreased only marginally to 64% (Q3 2015: 67%), reflecting Severstal's ability to efficiently reallocate sales volumes between markets and target higher margin domestic sales.
Long product sales volumes decreased 31% q/q reflecting subdued demand for long steel products due to seasonality and scheduled maintenance of the billet caster at Cherepovets Steel Mill.
Despite a marginal 1% q/q decline in large diameter pipe (LDP) sales volumes, Izhora Pipe Mill was operating at full capacity in Q4 2015. Severstal continued supplying LDPs to Gazprom for the Power of Siberia and Ukhta-Torzhok projects during the quarter. Moreover, some volumes were delivered to Transneft and Gazprom for maintenance projects.
Reflecting the continuing downward adjustment in global steel prices and a seasonally soft domestic market, which resulted in Russian steel producers reducing their prices, USD-denominated average steel prices for rolled products at RSD decreased q/q for almost all products (except for LDPs). Ongoing RUB devaluation weighed additional pressure on USD-denominated prices.
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