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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 Q3 2015 and 9M 2015.
Q3 2015 GROUP HIGHLIGHTS
● Crude steel production increased 2% to 2.89 mln tonnes (Q2 2015: 2.85 mln tonnes), while hot metal output increased 1% to 2.31 mln tonnes (Q2 2015: 2.29 mln tonnes) against the previous quarter, during which steel production was impacted by scheduled maintenance at the BOF#3 and continuous caster #2 and #4.
● Severstal’s proximity to the border allowed the Company to flexibly relocate sales volumes from export market, with share of domestic deliveries within the sales mix increasing to 67% (Q2 2015: 59%).
● Consolidated sales of steel products increased 13% q/q with Severstal’s steel assets continuing to run at near to full capacity. Steel consumption in Russia was stronger q/q despite less pronounced seasonality compared with previous years.
● Together this enabled the Company to reduce inventory levels and improve its receivables turnover ratio.
● The share of high value-added (HVA) products in the sales portfolio remained strong at 47% (Q2 2015: 47%) despite a 16% q/q increase in semi-finished products sales and a 9% q/q increase in hot-rolled coil sales.
● Coking coal concentrate sales remained flat q/q in spite of a decrease in ROM-coal output volumes in Q3 at Vorkutaugol on the back of scheduled long-walls repositioning activity during the period.
● Global steel prices continued to decline, largely impacted by concerns regarding the prospects of the Chinese economy. However, successful increases in RUB-denominated prices reflects improved buying activity on the domestic market, which has partially offset the impact of RUB devaluation.