Production
The Russian market is characterized by intense competition for customers, raw materials, capital and experienced personnel. The primary competitive factors in the domestic steel market include quality, price, payment terms and customer service.
Severstal’s key competitors in the domestic markets for flat-rolled steel products are OAO Magnitogrosk Metallurgical Kombinat (‘MMK’) and OAO Novolipetsk Metallurgical Kombinat (‘NLMK’), which, together with Severstal, accounted for more than 52% of Russia’s production of rolled-steel products in 2005. The major competitors in the market for steel sections and specialized products, such as heavy sections, include the Evraz Group, OAO Mechel (‘‘Mechel’’), OAO Oskolsky Electrometallurgical Works (‘‘Oskol’’), and OAO Nosta (OkhMK) (‘‘Nosta’’).
The following table sets out a list of Severstal’s principal competitors in the Russian market together with historical data for their main types of production:
|
tonnes |
Crude Steel |
Finished Goods |
|
|
November'2007 |
11 months'2007 |
November'2007 |
11 months'2007 |
|
Severstal |
1 014 448 |
10 816 532 |
897 794 |
9 781 544 |
|
MMK |
1 088 906 |
12 138 808 |
1 012 996 |
11 220 309 |
|
NLMK |
747 174 |
8 286 109 |
683 345 |
7 889 119 |
|
Evraz |
1 192 242 |
12 799 939 |
1 074 699 |
10 867 196 |
|
MetalloInvest |
530 761 |
5 981 754 |
450 318 |
4 910 098 |
|
Mechel |
404 214 |
5 080 281 |
334 750 |
4 085 768 |
|
Other |
946 519 |
11 027 314 |
504 179 |
5 617 412 |
|
Total |
5 924 264 |
66 130 737 |
4 965 203 |
54 371 446 |
Source: Chermet
|
