Q3 2019 GROUP HIGHLIGHTS
·
Hot metal output increased 7% q/q in Q3 2019 to 2.46 mln tonnes (Q2
2019: 2.30 mln tonnes) following short-term maintenance works at BF#1,
BF#4 and BF#5 in the previous quarter. Crude steel production declined
1% to 3.03 mln tonnes (Q2 2019: 3.06 mln tonnes) mainly reflecting a
decline in EAF steel output following the sale of Balakovo mini-mill in
July 2019.
·
Consolidated steel product sales remained flat q/q at 2.83 mln tonnes in
Q3 2019 (Q2 2019: 2.83 mln tonnes). The share of domestic sales remained
at historically high levels of 67% due to their continued attractiveness
(Q2 2019: 70%).
·
The share of high value-added (HVA) products within the sales portfolio
amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of
galvanised, colour-coated and cold-rolled products due to short-term
maintenance works at one of the pickling lines. This was offset by
higher sales volumes of thick plate and lower sales of long products.
·
Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q in
line with the 42% increase q/q in production of run-of-mine coal.
·
Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln
tonnes) reflecting higher production of iron ore concentrate at Karelsky
Okatysh.
·
Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2
2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky
Okatysh.
9M 2019 GROUP HIGHLIGHTS
·
Hot metal output increased 3% y/y to 7.13 mln tonnes in 9M 2019 (9M
2018: 6.91 mln tonnes) driven by improved maintenance works efficiency
and higher quality of raw materials. Crude steel production remained
almost flat at 9.13 mln tonnes (9M 2018: 9.10 mln tonnes), predominantly
reflecting higher aggregate productivity levels, which were offset by
lower EAF production in Q3 following the sale of Balakovo mini-mill.
·
Coking coal concentrate sales volumes from Vorkutaugol increased 43%
y/y, driven by growth in coal production. Iron ore concentrate sales
volumes increased 14% y/y to 4.66 mln tonnes (9M 2018: 4.08 mln tonnes)
predominantly reflecting production volumes growth at Karelsky Okatysh.
·
The share of HVA products remained high at 45% in 9M 2019, primarily
reflecting higher sales of galvanised and colour-coated products
following the launch of new product lines, which reached their full
utilisation rates in Q1 2019.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
Production, thousands of tonnes |
Q3 2019 |
Q2 2019 |
Change, % |
9M 2019 |
9M 2018 |
Change, % |
Crude Steel (Russian Steel) |
3,032 |
3,057 |
-1% |
9,133 |
9,098 |
0% |
Hot metal (Russian Steel) |
2,458 |
2,304 |
7% |
7,125 |
6,913 |
3% |
Sales volumes, thousands of tonnes |
Q3 2019 |
Q2 2019 |
Change, % |
9M 2019 |
9M 2018 |
Change, % |
Coking coal concentrate |
1,351 |
958 |
41% |
3,340 |
2,331 |
43% |
Iron ore pellets |
2,461 |
2,899 |
-15% |
8,192 |
8,054 |
2% |
Iron ore concentrate |
1,931 |
1,428 |
35% |
4,660 |
4,080 |
14% |
Total steel products (Consolidated) |
2,834 |
2,837 |
0% |
8,503 |
8,420 |
1% |
Total steel products (Russian Steel) |
2,847 |
2,848 |
0% |
8,538 |
8,453 |
1% |
SEVERSTAL’S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, thousands of tonnes |
Q3 2019 |
Q2 2019 |
Change, % |
9M 2019 |
9M 2018 |
Change, % |
Coal: |
330 |
388 |
-15% |
1,250 |
1,127 |
11% |
Coking coal concentrate |
66 |
108 |
-39% |
331 |
190 |
74% |
Steam coal |
264 |
280 |
-6% |
919 |
937 |
-2% |
Iron ore: |
1,443 |
1,686 |
-14% |
4,785 |
5,277 |
-9% |
Iron ore pellets |
1,380 |
1,488 |
-7% |
4,170 |
4,707 |
-11% |
Iron ore concentrate |
63 |
198 |
-68% |
615 |
570 |
8% |
Semi-finished products |
89 |
69 |
29% |
279 |
538 |
-48% |
Rolled products: |
2,292 |
2,313 |
-1% |
6,916 |
6,533 |
6% |
Hot-rolled coil |
1,168 |
1,040 |
12% |
3,310 |
2,878 |
15% |
Hot-rolled plate |
244 |
225 |
8% |
702 |
642 |
9% |
Cold-rolled coil |
226 |
242 |
-7% |
743 |
990 |
-25% |
Galvanised and metallic coated coil |
238 |
254 |
-6% |
729 |
627 |
16% |
Colour coated coil |
122 |
141 |
-13% |
365 |
294 |
24% |
Long products |
294 |
411 |
-28% |
1,067 |
1,102 |
-3% |
Downstream products: |
453 |
455 |
0% |
1,308 |
1,349 |
-3% |
Metalware products |
147 |
140 |
5% |
413 |
424 |
-3% |
Large diameter pipes |
100 |
106 |
-6% |
303 |
333 |
-9% |
Other tubes, pipes, formed shapes |
206 |
209 |
-1% |
592 |
592 |
0% |
SEVERSTAL RUSSIAN STEEL (‘RSD’)
Sales volumes, thousands of tonnes |
Q3 2019 |
Q2 2019 |
Change, % |
9M 2019 |
9M 2018 |
Change, % |
Total steel products |
2,847 |
2,848 |
0% |
8,538 |
8,453 |
1% |
Semi-finished products |
89 |
69 |
29% |
279 |
538 |
-48% |
Rolled products |
2,305 |
2,322 |
-1% |
6,949 |
6,565 |
6% |
Hot-rolled coil |
1,169 |
1,040 |
12% |
3,311 |
2,879 |
15% |
Hot-rolled plate |
245 |
225 |
9% |
703 |
642 |
10% |
Cold-rolled coil |
226 |
242 |
-7% |
743 |
990 |
-25% |
Galvanised and metallic coated coil |
238 |
254 |
-6% |
729 |
627 |
16% |
Colour coated coil |
122 |
141 |
-13% |
365 |
294 |
24% |
Long products |
305 |
420 |
-27% |
1,098 |
1,133 |
-3% |
Downstream products |
453 |
457 |
-1% |
1,310 |
1,350 |
-3% |
Metalware products |
148 |
142 |
4% |
416 |
425 |
-2% |
Large diameter pipes |
100 |
106 |
-6% |
303 |
333 |
-9% |
Other tubes, pipes, formed shapes |
205 |
209 |
-2% |
591 |
592 |
0% |
Sales price, $/tonne |
Q3 2019 |
Q2 2019 |
Change, % |
9M 2019 |
9M 2018 |
Change, % |
Semi-finished products |
414 |
450 |
-8% |
427 |
468 |
-9% |
Hot-rolled coil |
510 |
514 |
-1% |
506 |
562 |
-10% |
Hot-rolled plate |
683 |
659 |
4% |
660 |
716 |
-8% |
Cold-rolled coil |
647 |
629 |
3% |
621 |
627 |
-1% |
Galvanised and metallic coated coil |
733 |
729 |
1% |
724 |
761 |
-5% |
Colour coated coil |
905 |
918 |
-1% |
894 |
943 |
-5% |
Long products |
498 |
484 |
3% |
476 |
494 |
-4% |
Metalware products |
965 |
981 |
-2% |
965 |
970 |
-1% |
Large diameter pipes |
945 |
1,033 |
-9% |
996 |
1,116 |
-11% |
Other tubes, pipes, formed shapes |
580 |
585 |
-1% |
578 |
611 |
-5% |
Source from
Severstal |