Trading Statement

RNS Number : 1612N

OAO Severstal

11 February 2009

Severstal Releases FY 2008 Operational Results


February 11, 2009 - Severstal (LSE: SVST) today released its FY 2008 operational results as follows.


PRODUCTION VOLUMES


2008 overview


Production of crude steel in 2008 was 19.2 million tonnes, 10% higher than in 2007. Production of crude steel in Q4 2008 was 3.1 million tonnes, 48% lower than in the previous quarter. Production of rolled products dropped 41% to 2.5 million tonnes q-o-q. Total production of iron ore pellets in Q4 2008 was 43% lower than in Q3 2008, iron ore concentrate production was down by 24% and coal production decrease by 1%.



Consolidated production of hot metal and crude steel

 

Total throughput, metric tonnes

2007

2008

2008/2007

Q3 2008

Q4 2008

Q4 2008/

Q3 2008

Hot metal: total throughput

12,949,237

13,515,383

4%

4,323,240

2,209,616

-49%

Crude steel: total throughput

17,463,341

19,217,418

10%

6,008,750

3,142,828

-48%


Consolidated production (net of intercompany sales)

 

Production for sale, metric tonnes unless otherwise stated

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Coal:

4,408,155

3,912,044

-11%

1,055,278

1,319,592

25%

Coking coal concentrate

2,351,055

1,515,689

-36%

355,177

493,651

39%

Coking coal

230,428

173,946

-25%

86,290

25,880

-70%

Steam coal

1,826,672

2,222,409

22%

613,810

800,061

30%

Iron ore:

4,305,810

4,684,323

9%

1,138,118

974,613

-14%

Iron ore pellets

4,159,512

4,217,312

1%

1,050,650

944,180

-10%

Iron ore concentrate

146,298

467,011

219%

87,468

30,433

-65%

Gold (kilogrammes)

0

5,997

n.a.

1,401

2,562

83%

Semifinished products

1,820,624

2,184,874

20%

727,851

401,210

-45%

Rolled products:

13,254,438

14,315,750

8%

4,233,193

2,513,328

-41%

Hot-rolled strip and plate

5,909,881

6,295,558

7%

1,986,769

987,946

-50%

Cold-rolled sheet

1,903,037

2,366,931

24%

727,573

488,641

-33%

Galvanised and other metallic coated sheet

1,468,292

1,973,759

34%

610,814

422,459

-31%

Color coated sheet

229,518

236,914

3%

65,555

47,730

-27%

Long products

3,430,257

3,123,615

-9%

787,556

465,720

-41%

Rails

313,454

318,972

2%

54,927

100,832

84%

Downstream products:

1,941,870

1,886,703

-3%

516,608

383,518

-26%

Metalware products

1,135,828

1,010,345

-11%

249,719

204,777

-18%

Large diameter pipes

299,331

437,853

46%

134,424

116,732

-13%

Other tubes and pipes, formed shapes

469,514

438,505

-7%

132,466

62,010

-53%

Wheels, axles, tires

37,197

0

n.a.

0

0

n.a.




Segmental information


Mining*


Production for sale, metric tones unless otherwise stated

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Coal:

9,463,102

7,518,957

-21%

1,997,203

1,970,510

-1%

Coking coal concentrate

5,789,428

4,573,604

-21%

1,106,384

1,089,538

-2%

Coking coal

1,847,003

722,943

-61%

277,009

80,911

-71%

Steam coal

1,826,672

2,222,409

22%

613,810

800,061

30%

Iron ore:

14,695,474

13,978,683

-5%

3,919,119

2,485,870

-37%

Iron ore pellets

10,044,542

9,304,468

-7%

2,640,085

1,513,720

-43%

Iron ore concentrate

4,650,932

4,674,215

1%

1,279,034

972,150

-24%

Gold (kilogrammes)

0

5,997

n.a.

1,401

2,562

83%


*Kuzbassugol was deconsolidated in April 2008, PBS Coals was consolidated in December 2008


Russian Steel


Total throughput, metric tonnes

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Hot metal: total throughput

8,758,538

8,125,096

-7%

2,294,702

1,289,436

-44%

Crude steel: total throughput

11,898,556

11,096,916

-7%

3,177,342

1,657,971

-48%

Production for sale, metric tonnes







Semifinished products

871,862

908,984

4%

256,731

206,399

-20%

Rolled products:

9,426,112

8,735,162

-7%

2,402,581

1,421,162

-41%

Hot-rolled strip and plate

5,003,897

4,680,052

-6%

1,272,539

750,646

-41%

Cold-rolled sheet

1,435,163

1,358,257

-5%

375,189

247,348

-34%

Galvanised and other metallic coated sheet

735,454

669,148

-9%

192,695

107,362

-44%

Color coated sheet

229,518

219,761

-4%

60,398

40,695

-33%

Long products

2,022,080

1,807,944

-11%

501,759

275,112

-45%

Downstream products:

512,770

479,666

-6%

144,485

68,968

-52%

Metalware products

43,256

41,161

-5%

12,019

6,958

-42%

Other tubes and pipes, formed shapes

469,514

438,505

-7%

132,466

62,010

-53%


North America**


Total throughput, metric tonnes

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Hot metal: total throughput

1,656,314

3,200,804

93%

1,429,900

579,799

-59%

Crude steel: total throughput

1,979,725

5,099,912

158%

2,068,252

1,002,132

-52%

Production for sale, metric tonnes







Semifinished products

0

308,914

n.a.

190,907

18,488

-90%

Rolled products:

2,386,045

4,417,256

85%

1,600,537

948,031

-41%

Hot-rolled strip and plate

1,185,333

2,086,817

76%

824,878

384,605

-53%

Cold-rolled sheet

467,874

1,008,674

116%

352,384

241,293

-32%

Galvanised and other metallic coated

sheet

732,838

1,304,611

78%

418,119

315,098

-25%

Color coated sheet

0

17,153

n.a.

5,156

7,035

36%

Downstream products:

0

62,873

n.a.

29,730

33,143

11%

Metalware products

0

62,873

n.a.

29,730

33,143

11%


** DearbornColumbus (consolidated beginning Q1 2008), Sparrows Point (consolidated beginning Q2 2008)Warren (consolidated beginning Q3 2008), Wheeling (consolidated beginning Q3 2008)



Lucchini


Total throughput, metric tonnes

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Hot metal: total throughput

2,534,385

2,189,483

-14%

598,638

340,381

-43%

Crude steel: total throughput

3,585,060

3,020,591

-16%

763,156

482,725

-37%

Production for sale, metric tonnes







Semifinished products

1,222,808

981,723

-20%

280,213

176,322

-37%

Rolled products:

2,329,701

2,151,315

-8%

480,852

377,818

-21%

Long products

2,016,247

1,832,343

-9%

425,925

276,986

-35%

Rails

313,454

318,972

2%

54,927

100,832

84%

Downstream products:

72,838

39,743

-45%

10,266

12,165

18%

Metalware products

35,641

39,743

12%

10,266

12,165

18%

Wheels, axles, tires

37,197

0

n.a.

0

0

n.a.


Metalware


Production for sale, metric tonnes

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Downstream products:







Metalware products

1,056,931

866,568

-18%

197,704

152,511

-23%


Izhora pipe mill


Production for sale, metric tonnes

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Downstream products:







Large diameter pipes

299,331

437,853

46%

134,424

116,732

-13%



AVERAGE SELLING PRICES


Consolidated sales


Sales prices (EXW), USD/tonne unless otherwise stated

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Coal:

58

105

81%

122

90

-26%

Coking coal concentrate

84

144

71%

169

129

-24%

Coking coal

31

52

68%

69

36

-48%

Steam coal

26

36

38%

35

39

11%

Iron ore:

70

92

31%

98

68

-31%

Iron ore pellets

75

103

37%

108

82

-24%

Iron ore concentrate

59

72

22%

78

50

-36%

Gold (USD/kilogramme)

0

28,522

n.a.

29,527

27,289

-8%

Semifinished products







Rolled products:

727

985

35%

1,184

958

-19%

Hot-rolled strip and plate

617

888

44%

1,117

849

-24%

Cold-rolled sheet

676

921

36%

1,113

956

-14%

Galvanised and other metallic coated sheet

883

1,059

20%

1,193

1,076

-10%

Color coated sheet

1,219

1,449

19%

1,642

1,423

-13%

Long products

818

1,092

33%

1,319

932

-29%

Rails

740

936

26%

989

887

-10%

Downstream products:

1,072

1,507

41%

1,864

1,477

-21%

Metalware products

973

1,354

39%

1,655

1,415

-15%

Large diameter pipes

1,764

2,786

58%

2,950

2,560

-13%

Other tubes and pipes, formed shapes

789

1,036

31%

1,271

945

-26%

Wheels, axles, tires

2,683

0

n.a.

0

0

n.a.



Mining


Sales prices (EXW), USD/tonne unless otherwise stated

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Coal:

58

105

81%

122

90

-26%

Coking coal concentrate

84

144

71%

169

129

-24%

Coking coal

31

52

68%

69

36

-48%

Steam coal

26

36

38%

35

39

11%

Iron ore:

70

92

31%

98

68

-31%

Iron ore pellets

75

103

37%

108

82

-24%

Iron ore concentrate

59

72

22%

78

50

-36%

Gold (USD/kilogramme)

0

28,522

n.a.

29,527

27,289

-8%


Russian Steel


Sales prices (EXW), USD/tonne

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Semifinished products

436

675

55%

914

524

-43%

Rolled products:

666

924

39%

1,181

848

-28%

Hot-rolled strip and plate

620

915

48%

1,176

934

-21%

Cold-rolled sheet

662

874

32%

1,089

864

-21%

Galvanised and other metallic coated sheet

900

1,100

22%

1,339

1,010

-25%

Color coated sheet

1,219

1,431

17%

1,626

1,375

-15%

Long products

601

854

42%

1,146

542

-53%

Downstream products:

791

1,044

32%

1,272

958

-25%

Metalware products

815

1,100

35%

1,276

1,055

-17%

Other tubes and pipes, formed shapes

789

1,036

31%

1,271

945

-26%


North America


Sales prices (EXW), USD/tonne

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Semifinished products

0

923

n.a.

983

640

-35%

Rolled products:

707

965

36%

1,110

1,006

-9%

Hot-rolled strip and plate

605

903

49%

1,084

904

-17%

Cold-rolled sheet

721

980

36%

1,135

1,030

-9%

Galvanised and other metallic coated sheet

865

1,040

20%

1,132

1,090

-4%

Color coated sheet

0

1,709

n.a.

1,860

1,692

-9%

Downstream products:

0

1,823

n.a.

1,788

1,852

4%

Metalware products

0

1,823

n.a.

1,788

1,852

4%


Lucchini


Sales prices (EXW), USD/tonne

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Semifinished products

605

701

16%

848

696

-18%

Rolled products:

996

1,287

29%

1,475

1,244

-16%

Long products

1,036

1,343

30%

1,535

1,357

-12%

Rails

740

936

26%

989

887

-10%

Downstream products:

2,671

1,249

-53%

1,363

1,264

-7%

Metalware products

2,662

1,249

-53%

1,363

1,264

-7%

Wheels, axles, tires

2,683

0

n.a.

0

0

n.a.



Metalware


Sales prices (EXW), USD/tonne

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Downstream products:







Metalware products

923

1,343

46%

1,695

1,339

-21%


Izhora pipe mill


Sales prices (EXW), USD/tonne

2007

2008

2008/2007

Q2008

Q4 2008

Q4 2008/

Q3 2008

Downstream products:







Large diameter pipes

1,764

2,786

58%

2,951

2,580

-13%




Note:

Semifinished products include hot metal, pig iron, slabs, billets, ingots, steel casting and forgings.