Market Share
Severstal’s sales strategy is based on an analysis of expected market consumption and demand for certain steel products, which fluctuates from year to year. Production levels of crude steel are determined by Severstal’s sales strategy. Severstal produced 10.82 million tonnes of crude steel in 2005, compared to 10.44 million tonnes in 2004. The 3.6% increase in steel output in 2005 resulted mainly from equipment modernization and increasing demand in the domestic market.
The following table sets out, for the periods indicated, the historic annual production of crude steel by Severstal compared to crude steel production in Russia as a whole:
| tonnes’mln |
Severstal |
Russia |
Severstal / Russia |
| 2006 |
11.27 |
69.31 |
16.26% |
| 2005 |
10.82 |
64.86 |
16.7% |
| 2004 |
10.44 |
64.31 |
16.2% |
| 2003 |
9.89 |
61.47 |
16.1% |
| 2002 |
9.62 |
58.50 |
16.5% |
| 2001 |
9.30 |
57.45 |
16.2% |
| 
