Severstal reports Q4 & FY 2017 operational results
PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its operational results for Q4 2017 & FY 2017.
Q4 2017 GROUP HIGHLIGHTS
• Hot metal output increased 5% to 2.34 mln tonnes (Q3 2017: 2.23 mln tonnes) compared with the previous quarter, and crude steel production was up 2% at 3.01 mln tonnes (Q3 2017: 2.94 mln tonnes).
• Consolidated steel product sales declined 2% to 2.78 mln tonnes compared with the previous quarter (Q3 2017: 2.86 mln tonnes) after significant stock
• The Company increased export sales volumes to 42% (Q3 2017: 35%). The share
• Coking coal concentrate sales volumes from Vorkutaugol declined 10% impacted
• Iron ore pellet sales increased 39% and totalled 3.30 mln tonnes (Q3 2017: 2.38 mln tonnes) due to the realisation of a significant share of finished goods in transit in Q4, shifted from the previous quarter. Iron ore concentrate sales increased 6% q/q to 1.14 mln tonnes (Q3 2017: 1.08 mln tonnes). Iron ore concentrate sales improvement in Q4 reflects the consolidation of the Yakovlevskiy mine.
• In Q4 2017 raw material prices were high: HCC prices were mainly supported by supply disruptions at Dalrymple Bay (Australia) and Chinese restocking ahead of the heating season. Iron ore prices recovered as a result of higher steel margins in China and improved demand for higher quality iron ore. Global export steel prices remained high on the back of Chinese production restrictions
• In 2018, Severstal Resources anticipates an increase in production volumes of additional 40kt of pellets at Karelsky Okatysh and additional 370kt of coking coal concentrate at Vorkutaugol. Yakovlevskiy mine iron ore output is estimated to be c.1.3 million tonnes for 2018. Severstal Russian Steel production volumes growth will be positively impacted by a new ladle furnance (+75kt of crude steel) and a new HDG (+400kt)