Severstal Reports 4% YoY Dip in Steel Sales in 2020
Russian steel maker PAO Severstal reported that its pig iron production in 2020 increased by 1% YoY to 9.54 million tonnes while steel production and
Russian steel maker PAO Severstal reported that its pig iron production in 2020 increased by 1% YoY to 9.54 million tonnes while steel production and sales of steel products decreased by 4% YoY in 2020 to 11.314 million tonnes & 10.781 million tonnes respectively, mainly due to a decrease in electric steel production after the sale of the Balakovo long-range mill in 2019.
The share of products with high added value increased in 2020 by 2 p.p. up to 47%. Domestic sales accounted for 60%, which is lower than in 2019 (2019: 65%). This is due to the weakening of demand in the domestic market in 2020, as well as the sale of the Balakovo long range mill, which was mainly focused on sales to Russian customers.
The weighted average selling price of steel products decreased by 12% in 2020 due to the unfavorable pricing environment compared to 2019.
Iron ore pellet sales decreased by 1% YoY to 10.942 million tonnes in 2020. Iron ore concentrate sales increased 13% YoY to 7.07 million tonnes in 2020, driven by increased production at Karelsky Okatysh and Yakovlevsky mine.
Sales of coking coal concentrate at Vorkutaugol increased 1% YoY to 4.702 million tonnes in 2020.