PAO Severstal Reports Consolidated Sales and Production Results for the Fourth Quarter and Full Year of 2018
Hot metal output decreased 3% quarter on quarter in fourth quarter 2018 to 2.23 million tonnes, due to BF#2 short-term maintenance works. Crude steel production declined by 4% to 2.94 million tonnes reflecting a decrease in pig iron production and seasonal slowdown of production at Balakovo mini-mill.
Hot metal output remained almost unchanged in 2018 at 9.15 million tonnes, however crude steel production increased 3% to 12.04 million tonnes (fiscal year 2017: 11.65 million tonnes). This was driven by an improvement in steel production efficiency following the launch of ladle furnace #2 and higher production volumes from Balakovo mini-mill.
For the year, the company reported steel product sales increased 2% year on year to 11.18 million tonnes against 10.92 million tonnes a year ago, reflecting crude steel production growth. The higher iron ore concentrate sales year on year for fiscal year 2018 partially reflects the consolidation of the Yakovlevskiy mine and an uptick in production volumes at Olcon. Coking coal concentrate sales volumes at Vorkutaugol increased by 2% to 3.37 million tonnes in 2018.