PAO Severstal (MOEX: CHMF; LSE: SVST), one of the world's leading vertically integrated steel and steel-related mining companies, today announces its operational results for Q3 & 9M 2020.
Q3 2020 GROUP HIGHLIGHTS
- Hot metal output increased 3% q/q in Q3 2020 to 2.40 mln tonnes (Q2 2020: 2.33 mln tonnes) following the completion of maintenance works at blast furnace facilities in the previous quarter. Crude steel production increased by 3% to 2.89 mln tonnes (Q2 2020: 2.81 mln tonnes), supported by growth in hot metal output.
- Consolidated sales of steel products increased 18% q/q to 3.01 mln tonnes in Q3 2020 (Q2 2020: 2.55 mln tonnes) reflecting production growth, a lower share of export shipments with a longer realisation period vs the previous quarter and finished goods stock reduction.
- The Company increased its share of domestic steel shipments to 63% (Q2 2020: 56%) in response to a demand recovery in Russia in Q3 2020.
- The share of high value-added (HVA) products within the sales portfolio amounted to 49% (Q2 2020: 43%) as a result of delayed demand for HVA products, and the Company reduced HVA finished goods stock levels q/q.
- Sales volumes of coking coal concentrate from Vorkutaugol declined 5% q/q to 1.22 mln tonnes as a result of lower concentrate output and a lower run-of-mine (ROM-rate) at the Zapolyarnaya mine.
- Sales volumes of iron ore pellets increased by 3% to 2.61 mln tonnes (Q2 2020: 2.53 mln tonnes) on the back of iron ore pellet production growth and inventory sell-off q/q.
- Sales volumes of iron ore concentrate grew by 3% to 1.96 mln tonnes (Q2 2020: 1.90 mln tonnes), primarily driven by higher output at Karelsky Okatysh and Olcon.
9M 2020 GROUP HIGHLIGHTS
- Hot metal output remained flat y/y in 9M 2020 at 7.14 mln tonnes (9M 2019: 7.13 mln tonnes). Production of crude steel decreased to 8.55 mln tonnes (9M 2019: 9.13 mln tonnes) due to lower production volumes of EAF steel following the disposal of Balakovo mini-mill in July 2019.
- The share of HVA products remained stable y/y at 45% in 9M 2020. The share of domestic shipments in 2020 was 58%, which is lower than in 2019 (9M 2019: 67%). This is a result of a deceleration in domestic demand in 2020 after achieving peak levels in the previous year and the disposal of the Balakovo mini-mill, which primarily served domestic markets.
- The average steel selling prices for 9M 2020 declined from 10% to 19% across the product range, as a result of adverse pricing dynamics of global benchmarks y/y.
- Iron ore concentrate sales volumes grew 14% y/y to 5.33 mln tonnes (9M 2019: 4.66 mln tonnes) driven by output growth at Karelsky Okatysh and the Yakovlevskiy mine y/y. The Company expects to achieve total production of around 2mt of iron ore concentrate at the Yakovlevskiy mine in FY2020.
- Coking coal concentrate sales volumes from Vorkutaugol increased 3% y/y.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
Production, thousands of tonnes | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Crude Steel (Russian Steel) | 2,890 | 2,807 | 3% | 8,547 | 9,133 | (6%) |
Hot metal (Russian Steel) | 2,402 | 2,331 | 3% | 7,143 | 7,125 | 0% |
Sales volumes, thousands of tonnes | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Coking coal concentrate | 1,218 | 1,276 | (5%) | 3,445 | 3,340 | 3% |
Iron ore pellets | 2,613 | 2,532 | 3% | 8,112 | 8,192 | (1%) |
Iron ore concentrate | 1,960 | 1,904 | 3% | 5,333 | 4,660 | 14% |
Total steel products (Consolidated) | 3,006 | 2,551 | 18% | 8,306 | 8,503 | (2%) |
Total steel products (Russian Steel) | 3,020 | 2,561 | 18% | 8,340 | 8,538 | (2%) |
High value added steel products, % | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Severstal (Consolidated) | 49% | 43% | 6 ppts | 45% | 45% | (0 ppts) |
Severstal Russian Steel | 49% | 43% | 6 ppts | 45% | 45% | (0 ppts) |
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, thousands of tonnes | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Coal: | 344 | 370 | (7%) | 1,101 | 1,250 | (12%) |
Coking coal concentrate | 46 | 104 | (56%) | 215 | 331 | (35%) |
Steam coal | 298 | 266 | 12% | 886 | 919 | (4%) |
Iron ore: | 1,358 | 1,511 | (10%) | 4,530 | 4,785 | (5%) |
Iron ore pellets | 1,355 | 1,461 | (7%) | 4,343 | 4,170 | 4% |
Iron ore concentrate | 3 | 50 | (94%) | 187 | 615 | (70%) |
Semi-finished products | 97 | 100 | (3%) | 389 | 279 | 39% |
Rolled products: | 2,383 | 2,084 | 14% | 6,637 | 6,916 | (4%) |
Hot - rolled coil | 1,267 | 1,179 | 7% | 3,643 | 3,310 | 10% |
Hot - rolled plate | 244 | 219 | 11% | 715 | 702 | 2% |
Cold - rolled coil | 253 | 198 | 28% | 661 | 743 | (11%) |
Galvanised and metallic coated coil | 286 | 196 | 46% | 701 | 729 | (4%) |
Colour coated coil | 162 | 113 | 43% | 373 | 365 | 2% |
Long products | 171 | 179 | (4%) | 544 | 1,067 | (49%) |
Downstream products: | 526 | 367 | 43% | 1,280 | 1,308 | (2%) |
Metalware products | 145 | 135 | 7% | 426 | 413 | 3% |
Large diameter pipes | 85 | 25 | n/a | 129 | 303 | (57%) |
Other tubes, pipes, formed shapes | 296 | 207 | 43% | 725 | 592 | 22% |
SALES PRICE, SEVERSTAL RUSSIAN STEEL ('RSD')
Sales price, $/tonne | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Semi-finished products | 376 | 388 | (3%) | 385 | 427 | (10%) |
Hot - rolled coil | 416 | 417 | 0% | 423 | 506 | (16%) |
Hot-rolled plate | 517 | 545 | (5%) | 558 | 660 | (15%) |
Cold - rolled coil | 504 | 528 | (5%) | 536 | 621 | (14%) |
Galvanised and metallic coated coil | 639 | 643 | (1%) | 638 | 724 | (12%) |
Colour coated coil | 797 | 790 | 1% | 789 | 894 | (12%) |
Long products | 411 | 417 | (1%) | 419 | 476 | (12%) |
Metalware products | 832 | 837 | (1%) | 852 | 965 | (12%) |
Large diameter pipes | 825 | 778 | 6% | 811 | 996 | (19%) |
Other tubes, pipes, formed shapes | 480 | 477 | 1% | 492 | 578 | (15%) |
Sales price, $/tonne | Q3 2020 | Q2 2020 | Change, % | 9M 2020 | 9M 2019 | Change, % |
Weighted average steel selling price | 510 | 500 | 2% | 510 | 602 | (15%) |
NOTES:
- Sales prices are stated on EXW basis;
- Segmental data includes intercompany sales;
- Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings;
- Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.
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OAO Severstal published this content on 09 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 October 2020 07:29:06 UTC