Severstal reduced Q2 sales by 2% q/q

MOSCOW, July 24 (Reuters) – Russia’s Severstal cut steel product sales by 2% quarter-on-quarter to 2.7 million tons in the second quarter as finished goods stocks in its supply chain normalized, the company said.

The steel production of the company, the fourth largest in Russia, increased in the second quarter compared to the first quarter by 9% to 2.95 million tons.

Sales volume in the first half of the year increased by 9% year-on-year to 5.47 million tonnes, steel production in this period increased by 6% to 5.65 million tonnes.

“In the second quarter of 2023, the situation on the global markets was quite difficult. Steel and commodity prices fell. The decline began in March against a background of lower demand for steel in China… Prices did not stabilize until June, reaching USD 545/t FOB China. At the same time, we do not observe such price volatility on the Russian market,” said Alexander Shevelev, the head of the company, whose words are quoted in the communiqué. (Anastasia Lyrchikova)