Bloomberg reported that OAO Severstal, the steelmaker controlled by billionaire Mr Alexey Mordashov increased crude steel output by 6% in the second quarter from the previous three months as demand rose.

Russia based Severstal said in a statement that production increased to 3.87 million tonnes in the period ended June 30. Gold output climbed 14% to 197,936 ounces while the average sales price was USD 1,513 an ounce.

Severstal sold three of its five US steel plants to Renco Group Inc in March after rising costs led to a USD 1.32 billion loss from the sites in three years. The company is seeking to improve profitability by expanding its mining business and to reduce debt which was USD 6.1 billion as of March 31.

It said in a separate filing that the company plans to use the proceeds from the five year USD 500 million dollar bonds sold earlier this month to refinance RUB 15 billion of domestic bonds due in September.

(Sourced from Bloomberg)