Severstal reports Q1 2020 operational results

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.