Trading Statement

RNS Number : 8232G
OAO Severstal
28 October 2008
 






Severstal Releases 9m 2008 Operational Results


October 28, 2008 - Severstal (LSE: SVST) today released its 9m 2008 operational results as follows.


PRODUCTION VOLUMES


9m 2008 overview


Production of crude steel in Q3 2008 was 6.0 million tonnes, 14% higher than in the previous quarter. Production of rolled products rose 6% to 4.3 million tonnes q-o-q. Total production of iron ore pellets in Q3 2008 was 5higher than in Q2 2008, iron ore concentrate production was up by 1% and coal production increased by 15%.



Consolidated production of hot metal and crude steel

 

Total throughput, metric tonnes

9M 2007

9M 2008

9M 2008/

9M 2007

Q2 2008

Q3 2008

Q3 2008/

Q2 2008

Hot metal: total throughput

9,636,606

11,305,767

17%

3,709,728

4,323,240

17%

Crude steel: total throughput

13,046,415

16,074,591

23%

5,270,978

6,008,750

14%


Consolidated production (net of intercompany sales)

 

Production for sale, metric tonnes unless otherwise stated

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Coal:

3,336,708

2,592,452

-22%

781,193

1,055,278

35%

Coking coal concentrate

1,802,670

1,022,038

-43%

377,524

355,177

-6%

Coking coal

107,245

148,066

38%

17,160

86,290

403%

Steam coal

1,426,792

1,422,348

0%

386,509

613,810

59%

Iron ore:

3,060,984

3,709,710

21%

1,037,283

1,138,118

10%

Iron ore pellets

3,006,579

3,273,132

9%

911,543

1,050,650

15%

Iron ore concentrate

54,405

436,578

702%

125,740

87,468

-30%

Gold (kilogrammes)

0

3,436

n.a.

1,135

1,401

23%

Semifinished products

1,310,342

1,785,426

36%

534,271

729,613

37%

Rolled products:

10,016,346

11,843,060

18%

4,021,764

4,273,831

6%

Hot-rolled strip and plate

4,501,320

5,341,973

19%

1,749,321

2,021,130

16%

Cold-rolled sheet

1,406,694

1,883,103

34%

632,050

732,386

16%

Galvanised and other metallic coated sheet

1,122,339

1,552,764

38%

546,209

612,278

12%

Color coated sheet

182,795

189,185

3%

65,163

65,555

1%

Long products

2,577,705

2,657,896

3%

953,707

787,556

-17%

Rails

225,493

218,140

-3%

75,314

54,927

-27%

Downstream products:

1,439,983

1,505,594

5%

516,759

519,017

0%

Metalware products

865,265

807,977

-7%

286,103

252,128

-12%

Large diameter pipes

185,883

321,121

73%

108,648

134,424

24%

Other tubes and pipes, formed shapes

351,639

376,496

7%

122,007

132,466

9%

Wheels, axles, tires

37,197

0

n.a.

0

0

n.a.



Segmental information


Mining


Production for sale, metric tones unless otherwise stated

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Coal:

7,110,273

5,548,447

-22%

1,736,445

1,997,203

15%

Coking coal concentrate

4,298,069

3,484,066

-19%

1,191,913

1,106,384

-7%

Coking coal

1,385,412

642,033

-54%

158,023

277,009

75%

Steam coal

1,426,792

1,422,348

0%

386,509

613,810

59%

Iron ore:

10,841,130

11,492,813

6%

3,795,600

3,919,119

3%

Iron ore pellets

7,366,435

7,790,748

6%

2,523,501

2,640,085

5%

Iron ore concentrate

3,474,695

3,702,065

7%

1,272,099

1,279,034

1%

Gold (kilogrammes)

0

3,436

n.a.

1,135

1,401

23%


* In April 2008, we sold Kuzbassugol to Arcelor Mittal.


Russian Steel


Total throughput, metric tonnes

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Hot metal: total throughput

6,507,309

6,835,660

5%

2,229,796

2,294,702

3%

Crude steel: total throughput

8,838,359

9,438,945

7%

3,075,096

3,177,342

3%

Production for sale, metric tonnes







Semifinished products

630,529

702,584

11%

206,432

256,731

24%

Rolled products:

7,033,365

7,314,000

4%

2,517,596

2,402,581

-5%

Hot-rolled strip and plate

3,719,046

3,929,406

6%

1,384,702

1,272,539

-8%

Cold-rolled sheet

1,065,399

1,110,909

4%

367,920

375,189

2%

Galvanised and other metallic coated sheet

555,319

561,786

1%

187,913

192,695

3%

Color coated sheet

182,795

179,067

-2%

60,201

60,398

0%

Long products

1,510,806

1,532,832

1%

516,859

501,759

-3%

Downstream products:

381,886

410,698

8%

132,289

144,485

9%

Metalware products

30,247

34,203

13%

10,282

12,019

17%

Other tubes and pipes, formed shapes

351,639

376,496

7%

122,007

132,466

9%


North America**


Total throughput, metric tonnes

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Hot metal: total throughput

1,226,790

2,621,005

114%

859,618

1,429,900

66%

Crude steel: total throughput

1,494,491

4,097,780

174%

1,318,084

2,068,252

57%

Production for sale, metric tonnes







Semifinished products

0

292,188

n.a.

99,519

192,669

94%

Rolled products:

1,863,074

3,509,863

88%

1,121,704

1,641,175

46%

Hot-rolled strip and plate

954,760

1,736,573

82%

494,316

859,239

74%

Cold-rolled sheet

341,295

772,194

126%

264,130

357,197

35%

Galvanised and other metallic coated

sheet

567,020

990,978

75%

358,297

419,583

17%

Color coated sheet

0

10,118

n.a.

4,962

5,156

4%

Downstream products:

0

32,139

n.a.

0

32,139

n.a.

Metalware products

0

32,139

n.a.

0

32,139

n.a.


** 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

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Hot metal and pig iron: total throughput

1,902,507

1,849,102

-3%

620,314

598,638

-3%

Crude steel: total throughput

2,713,564

2,537,866

-6%

877,798

763,156

-13%

Production for sale, metric tonnes







Semifinished products

910,875

805,401

-12%

243,066

280,213

15%

Rolled products:

1,753,472

1,773,497

1%

657,890

480,852

-27%

Long products

1,527,979


1,555,357

2%

582,576

425,925

-27%

Rails

225,493

218,140

-3%

75,314

54,927

-27%

Downstream products:

68,474

27,578

-60%

10,659

10,266

-4%

Metalware products

31,277

27,578

-12%

10,659

10,266

-4%

Wheels, axles, tires

37,197

0

n.a.

0

0

n.a.


Metalware


Production for sale, metric tonnes

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Downstream products:







Metalware products

803,740

714,058

-11%

265,162

197,704

-25%


Izhora pipe mill


Production for sale, metric tonnes

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Downstream products:







Large diameter pipes

185,883

321,121

73%

108,648

134,424

24%



AVERAGE SELLING PRICES


Consolidated sales


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

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Coal:

56

110

96%

118

122

3%

Coking coal concentrate

82

149

82%

155

169

9%

Coking coal

30

54

80%

49

69

41%

Steam coal

25

34

36%

34

35

3%

Iron ore:

68

97

43%

101

98

-3%

Iron ore pellets

74

106

43%

112

108

-4%

Iron ore concentrate

57

78

37%

79

78

-1%

Gold (USD/kilogramme)

0

29,531

n.a.

28,412

30,107

6%

Semifinished products







Rolled products:

726

990

36%

984

1,183

20%

Hot-rolled strip and plate

607

897

48%

868

1,119

29%

Cold-rolled sheet

676

911

35%

864

1,114

29%

Galvanised and other metallic coated sheet

889

1,048

18%

1,021

1,191

17%

Color coated sheet

1,233

1,430

16%

1,502

1,615

8%

Long products

821

1,122

37%

1,180

1,321

12%

Rails

721

956

33%

990

989

0%

Downstream products:

1,041

1,521

46%

1,520

1,874

23%

Metalware products

965

1,342

39%

1,342

1,662

24%

Large diameter pipes

1,674

2,579

54%

2,543

2,951

16%

Other tubes and pipes, formed shapes

787

1,050

33%

1,061

1,271

20%

Wheels, axles, tires

2,683

0

-100%

0

0

n.a.


Mining


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

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Coal:

56

110

96%

118

122

3%

Coking coal concentrate

82

149

82%

155

169

9%

Coking coal

30

54

80%

49

69

41%

Steam coal

25

34

36%

34

35

3%

Iron ore:

68

97

43%

101

98

-3%

Iron ore pellets

74

106

43%

112

108

-4%

Iron ore concentrate

57

78

37%

79

78

-1%

Gold (USD/kilogramme)

0

29,531

n.a.

28,412

30,107

6%


Russian Steel


Sales prices (EXW), USD/tonne

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Semifinished products

411

722

76%

731

914

25%

Rolled products:

666

933

40%

942

1,178

25%

Hot-rolled strip and plate

616

916

49%

909

1,178

30%

Cold-rolled sheet

661

876

33%

877

1,092

25%

Galvanised and other metallic coated sheet

908

1,097

21%

1,094

1,327

21%

Color coated sheet

1,233

1,415

15%

1,496

1,596

7%

Long products

614

905

47%

966

1,146

19%

Downstream products:

789

1,047

33%

1,052

1,262

20%

Metalware products

816

1,017

25%

966

1,186

23%

Other tubes and pipes, formed shapes

787

1,050

33%

1,061

1,271

20%


North America**


Sales prices (EXW), USD/tonne

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Semifinished products

0

961

n.a.

954

965

1%

Rolled products:

704

953

35%

869

1,112

28%

Hot-rolled strip and plate

604

905

50%

790

1,087

38%

Cold-rolled sheet

724

961

33%

843

1,135

35%

Galvanised and other metallic coated sheet

869

1,021

17%

979

1,134

16%

Color coated sheet

0

1,722

n.a.

1,574

1,860

18%

Downstream products:

0

1,788

n.a.

0

1,788

n.a.

Metalware products

0

1,788

n.a.

0

1,788

n.a.


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


Lucchini


Sales prices (EXW), USD/tonne

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Semifinished products

546

714

31%

728

848

16%

Rolled products:

989

1,296

31%

1,330

1,475

11%

Long products

1,030

1,340

30%

1,375

1,535

12%

Rails

721

956

33%

990

989

0%

Downstream products:

2,679

1,242

-54%

1,207

1,363

13%

Metalware products

2,675

1,242

-54%

1,207

1,363

13%

Wheels, axles, tires

2,683

0

n.a.

0

0

n.a.


Metalware


Sales prices (EXW), USD/tonne

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Downstream products:







Metalware products

904

1,344

49%

1,365

1,695

24%


Izhora pipe mill


Sales prices (EXW), USD/tonne

9M 2007

9M 2008

9M 2008/

9M 2007

Q2008

Q3 2008

Q3 2008/

Q2 2008

Downstream products:







Large diameter pipes

1,674

2,579

54%

2,543

2,951

16%




Note:

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