Severstal, a Russian steelmaker, saw a slight decrease in its steel sales for the third quarter of 2023. This comes amid scheduled repairs and a general dip in production, although there are positive signs of market recovery and expected demand growth for the year.
Severstal, a prominent Russian steel manufacturer, has released its operational data for the third quarter and first nine months of 2023. According to the report, the company's crude steel output in the third quarter reached 2.69 million metric tons, showing an 8.6% decline compared to the previous quarter. The reduction was mainly attributed to planned maintenance activities.
During the same period, the production of pig iron stood at 2.71 million metric tons, which also marked a 7.2% fall compared to the second quarter of this year. However, it's worth noting that both crude steel and pig iron outputs for the first nine months of the year have increased by 4.7% and 2.7%, respectively, year-on-year.
Steel sales for Severstal in this quarter were slightly down at 2.69 million metric tons, decreasing by a marginal 0.1% quarter on quarter. Sales of semi-finished products experienced a more noticeable drop of 18.1% to 230,000 metric tons in comparison to the last quarter.
For the January-September period this year, Severstal's total steel sales did see an uptick, amounting to 8.16 million metric tons, a 0.4% increase year-on-year. However, the sales of semi-finished products plunged by a significant 36.7% to 810,000 metric tons when compared to the same timeframe last year.
Alexander Shevelev, the CEO of Severstal, provided insights into the market dynamics. He noted that the Russian market has remained stable in terms of pricing. Signs are emerging of a market recovery following the economically challenging year of 2022. For 2023, the company anticipates a 6% increase in demand, primarily driven by the construction and mechanical engineering sectors.
Although Severstal faced a slight decrease in steel sales and production in the third quarter due to planned maintenance, the overall outlook appears positive. With stable prices and an expected demand growth in the Russian market, the company seems well-positioned for the remainder of the year.