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28 Jul 2008 08:51
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SeverstalĀ ReleasesĀ H1Ā 2008Ā Operational Results
July 28, 2008Ā -Ā SeverstalĀ (LSE:Ā SVST) today released itsĀ H1Ā 2008Ā operational results as follows.
PRODUCTION VOLUMES
H1Ā 2008Ā overview
Production of crude steel in Q2 2008 was 5.3 million tonnes, 10% higher than in the previous quarter. Production of rolled products rose 13% to 4 million tonnes. Total production of iron ore pellets was 4% lower than in Q1 2008, iron ore concentrate production was up by 11% and coking coal concentrate production rose by 1%.
Consolidated productionĀ of hot metal and crude steel
|
Total throughput, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1Ā 2008 |
|
Hot metal: total throughput |
6,607,432 |
6,982,527 |
6% |
3,272,800 |
3,709,728 |
13% |
|
Crude steel: total throughput |
9,013,268 |
10,065,841 |
12% |
4,794,863 |
5,270,978 |
10% |
Consolidated productionĀ (net of intercompany sales)
|
Production for sale, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Coal: |
2,692,655 |
1,537,174 |
-43% |
755,982 |
781,192 |
3% |
|
Coking coal concentrate |
1,441,960 |
666,861 |
-54% |
289,337 |
377,524 |
30% |
|
Coking coal |
47,729 |
61,776 |
29% |
44,617 |
17,159 |
-62% |
|
Steam coal |
1,202,966 |
808,537 |
-33% |
422,028 |
386,509 |
-8% |
|
Iron ore: |
1,929,431 |
2,571,592 |
33% |
1,534,309 |
1,037,283 |
-32% |
|
Iron ore pellets |
1,929,431 |
2,222,482 |
15% |
1,310,939 |
911,543 |
-30% |
|
Iron ore concentrate |
0 |
349,110 |
n.a. |
223,371 |
125,739 |
-44% |
|
Gold |
0 |
2,035 |
n.a. |
900 |
1,135 |
26% |
|
Semifinished products |
974,401 |
1,055,813 |
8% |
521,542 |
534,271 |
2% |
|
Rolled products: |
6,845,289 |
7,569,229 |
11% |
3,547,463 |
4,021,766 |
13% |
|
Hot-rolled strip and plate |
3,086,055 |
3,320,843 |
8% |
1,571,522 |
1,749,321 |
11% |
|
Cold-rolled sheet |
958,099 |
1,150,718 |
20% |
518,667 |
632,051 |
22% |
|
Galvanised and other metallic coated sheet |
728,979 |
940,486 |
29% |
394,276 |
546,210 |
39% |
|
Color coated sheet |
121,440 |
123,630 |
2% |
58,467 |
65,163 |
11% |
|
Long products |
1,792,950 |
1,870,340 |
4% |
916,633 |
953,707 |
4% |
|
Rails |
157,766 |
163,213 |
3% |
87,899 |
75,314 |
-14% |
|
Downstream products: |
964,442 |
986,576 |
2% |
469,816 |
516,760 |
10% |
|
Metalware products |
588,709 |
555,849 |
-6% |
269,745 |
286,104 |
6% |
|
Large diameter pipes |
104,878 |
186,698 |
78% |
78,049 |
108,649 |
39% |
|
Other tubes and pipes, formed shapes |
233,658 |
244,030 |
4% |
122,023 |
122,007 |
0% |
|
Wheels, axles, tires |
37,197 |
0 |
n.a. |
0 |
0 |
n.a. |
Segmental information
Mining
|
Production for sale, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Coal: |
5,268,815 |
3,551,244 |
-33% |
1,814,800 |
1,736,444 |
-4% |
| Coal (Vorkutaugol) |
4,259,312 |
3,192,674 |
-25% |
1,456,230 |
1,736,444 |
19% |
| Coal (Kuzbassugol) |
1,009,503 |
358,570* |
n.a. |
358,570 |
0* |
n.a. |
|
Coking coal concentrate |
3,036,692 |
2,377,683 |
-22% |
1,185,770 |
1,191,913 |
1% |
| Coking coal concentrateĀ (Vorkutaugol) |
2,142,340 |
2,051,561 |
-4% |
859,648 |
1,191,913 |
39% |
| Coking coal concentrateĀ (Kuzbassugol) |
894,352 |
326,122* |
n.a. |
326,122 |
0* |
n.a. |
|
Coking coal |
1,029,157 |
365,024 |
-65% |
207,001 |
158,023 |
-24% |
| Coking coalĀ (Vorkutaugol) |
914,006 |
332,576 |
-64% |
174,553 |
158,023 |
-9% |
| Coking coalĀ (Kuzbassugol) |
115,151 |
32,448 |
-72% |
32,448 |
0* |
n.a. |
|
Steam coal |
1,202,966 |
808,537 |
-33% |
422,028 |
386,509 |
-8% |
|
Iron ore: |
7,093,011 |
7,573,694 |
7% |
3,778,094 |
3,795,600 |
0% |
|
Iron ore pellets |
4,814,073 |
5,150,663 |
7% |
2,627,162 |
2,523,501 |
-4% |
|
Iron ore concentrate |
2,278,938 |
2,423,031 |
6% |
1,150,932 |
1,272,099 |
11% |
|
Gold |
0 |
2,035 |
n.a. |
900 |
1,135 |
26% |
*Ā In April 2008, we sold Kuzbassugol to Arcelor Mittal.
Russian Steel
|
Total throughput, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Hot metal: total throughput |
4,368,830 |
4,540,958 |
4% |
2,311,162 |
2,229,796 |
-4% |
|
Crude steel: total throughput |
5,946,212 |
6,261,603 |
5% |
3,186,508 |
3,075,095 |
-3% |
|
Production for sale, metric tonnes |
||||||
|
Semifinished products |
495,221 |
445,853 |
-10% |
239,420 |
206,433 |
-14% |
|
Rolled products: |
4,695,054 |
4,911,419 |
5% |
2,393,822 |
2,517,597 |
5% |
|
Hot-rolled strip and plate |
2,454,286 |
2,656,867 |
8% |
1,272,165 |
1,384,702 |
9% |
|
Cold-rolled sheet |
730,793 |
735,720 |
1% |
367,800 |
367,920 |
0% |
|
Galvanised and other metallic coatedĀ sheet |
378,509 |
369,091 |
-2% |
181,178 |
187,913 |
4% |
|
Color coated sheet |
121,440 |
118,669 |
-2% |
58,467 |
60,202 |
3% |
|
Long products |
1,010,026 |
1,031,072 |
2% |
514,213 |
516,859 |
1% |
|
Downstream products: |
253,172 |
266,214 |
5% |
133,924 |
132,290 |
-1% |
|
Metalware products |
19,514 |
22,184 |
14% |
11,901 |
10,283 |
-14% |
|
Other tubes and pipes, formed shapes |
233,658 |
244,030 |
4% |
122,023 |
122,007 |
0% |
North America**
|
Total throughput, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Hot metal: total throughput |
955,602 |
1,191,106 |
25% |
331,488 |
859,618 |
159% |
|
Crude steel: total throughput |
1,153,496 |
2,029,528 |
76% |
711,443 |
1,318,085 |
85% |
| Crude steelĀ (Dearborn) |
1,153,496 |
901,795 |
-22% |
389,323 |
512,471 |
32% |
| Crude steelĀ (Columbus) |
0 |
684,461 |
n.a. |
322,120 |
362,341 |
12% |
| Crude steelĀ (Sparrows Point) |
0 |
443,272 |
n.a. |
0 |
443,272 |
n.a. |
|
Production for sale, metric tonnes |
||||||
|
Semifinished products |
0 |
99,519 |
n.a. |
0 |
99,519 |
n.a. |
|
Rolled products: |
1,293,020 |
1,868,688 |
45% |
746,983 |
1,121,705 |
50% |
| Rolled productsĀ (Dearborn) |
1,269,309 |
952,642 |
-25% |
431,267 |
521,376 |
21% |
| Rolled productsĀ (Columbus) |
23,711 |
652,480 |
n.a. |
315,716 |
336,763 |
7% |
| Rolled productsĀ (Sparrows Point) |
0 |
263,566 |
n.a. |
0 |
263,566 |
n.a. |
|
Hot-rolled strip and plate |
715,244 |
877,333 |
23% |
383,017 |
494,316 |
29% |
|
Cold-rolled sheet |
227,306 |
414,997 |
83% |
150,867 |
264,130 |
75% |
|
Galvanised and other metallic coated sheet |
350,470 |
571,395 |
63% |
213,098 |
358,297 |
68% |
** SNA, SevercorrĀ (consolidated beginning Q1 2008),Ā Sparrows PointĀ (consolidated beginning Q2 2008)
Lucchini
|
Total throughput, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Hot metalĀ and pig iron: total throughput |
1,283,000 |
1,250,464 |
-3% |
630,150 |
620,314 |
-2% |
|
Crude steel: total throughput |
1,913,560 |
1,774,710 |
-7% |
896,912 |
877,798 |
-2% |
| Crude steelĀ (Piombino) |
1,257,707 |
1,159,235 |
-8% |
586,515 |
572,720 |
-2% |
| Crude steelĀ (Ascometal) |
655,853 |
615,475 |
-6% |
310,397 |
305,078 |
-2% |
|
Production for sale, metric tonnes |
||||||
|
Semifinished products |
601,606 |
525,188 |
-13% |
282,121 |
243,066 |
-14% |
|
Rolled products: |
1,262,240 |
1,292,645 |
2% |
634,756 |
657,890 |
4% |
| Rolled productsĀ (Piombino) |
802,466 |
843,788 |
5% |
414,756 |
429,033 |
3% |
| Rolled productsĀ (Ascometal) |
459,774 |
448,857 |
-2% |
220,000 |
228,857 |
4% |
|
Long products |
1,104,474 |
1,129,432 |
2% |
546,857 |
582,576 |
7% |
|
Rails |
157,766 |
163,213 |
3% |
87,899 |
75,314 |
-14% |
|
Downstream products: |
59,233 |
17,312 |
-71% |
6,653 |
10,659 |
60% |
|
Metalware products |
22,036 |
17,312 |
-21% |
6,653 |
10,659 |
60% |
|
Wheels, axles, tires |
37,197 |
0 |
n.a. |
0 |
0 |
n.a. |
Metalware
|
Production for sale, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Downstream products: |
||||||
|
Metalware products |
547,159 |
516,354 |
-6% |
251,191 |
265,163 |
6% |
Izhora pipe mill
|
Production for sale, metric tonnes |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Downstream products: |
||||||
|
Large diameter pipes |
104,878 |
186,697 |
78% |
78,049 |
108,649 |
39% |
AVERAGE SELLING PRICES
ConsolidatedĀ sales
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Coal: |
55 |
104 |
89% |
91 |
118 |
30% |
|
Coking coal concentrate |
81 |
139 |
72% |
123 |
155 |
26% |
|
Coking coal |
31 |
48 |
55% |
47 |
49 |
4% |
|
Steam coal |
26 |
33 |
27% |
32 |
34 |
6% |
|
Iron ore: |
69 |
96 |
39% |
91 |
101 |
11% |
|
Iron ore pellets |
75 |
105 |
40% |
97 |
112 |
15% |
|
Iron ore concentrate |
58 |
78 |
34% |
77 |
79 |
3% |
|
Gold |
0 |
29,196 |
n.a. |
29,671 |
28,422 |
-4% |
|
Semifinished products |
||||||
|
Rolled products: |
713 |
881 |
24% |
769 |
983 |
28% |
|
Hot-rolled strip and plate |
592 |
760 |
28% |
640 |
867 |
35% |
|
Cold-rolled sheet |
670 |
778 |
16% |
686 |
864 |
26% |
|
Galvanised and other metallic coated sheet |
896 |
954 |
6% |
869 |
1,020 |
17% |
|
Color coated sheet |
1,201 |
1,325 |
10% |
1,192 |
1,450 |
22% |
|
Long products |
805 |
1,041 |
29% |
900 |
1,179 |
31% |
|
Rails |
735 |
945 |
29% |
901 |
990 |
10% |
|
Downstream products: |
1,001 |
1,344 |
34% |
1,148 |
1,520 |
32% |
|
Metalware products |
937 |
1,199 |
28% |
1,045 |
1,343 |
29% |
|
Large diameter pipes |
1,494 |
2,335 |
56% |
2,051 |
2,543 |
24% |
|
Other tubes and pipes, formed shapes |
768 |
937 |
22% |
810 |
1,061 |
31% |
|
Wheels, axles, tires |
2,683 |
0 |
n.a. |
0 |
0 |
n.a. |
Mining
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Coal: |
55 |
104 |
89% |
91 |
118 |
30% |
|
Coking coal concentrate |
81 |
139 |
72% |
123 |
155 |
26% |
|
Coking coal |
31 |
48 |
55% |
47 |
49 |
4% |
|
Steam coal |
26 |
33 |
27% |
32 |
34 |
6% |
|
Iron ore: |
69 |
96 |
39% |
91 |
101 |
11% |
|
Iron ore pellets |
75 |
105 |
40% |
97 |
112 |
15% |
|
Iron ore concentrate |
58 |
78 |
34% |
77 |
79 |
3% |
|
Gold |
0 |
29,196 |
n.a. |
29,671 |
28,422 |
-4% |
Russian Steel
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Semifinished products |
408 |
618 |
51% |
502 |
731 |
46% |
|
Rolled products: |
651 |
818 |
26% |
687 |
940 |
37% |
|
Hot-rolled strip and plate |
596 |
794 |
33% |
665 |
907 |
36% |
|
Cold-rolled sheet |
653 |
774 |
19% |
680 |
877 |
29% |
|
Galvanised and other metallic coated sheet |
915 |
987 |
8% |
877 |
1,093 |
25% |
|
Color coated sheet |
1,201 |
1,315 |
9% |
1,192 |
1,441 |
21% |
|
Long products |
592 |
791 |
34% |
618 |
964 |
56% |
|
Downstream products: |
772 |
934 |
21% |
812 |
1,054 |
30% |
|
Metalware products |
814 |
910 |
12% |
837 |
979 |
17% |
|
Other tubes and pipes, formed shapes |
768 |
937 |
22% |
810 |
1,061 |
31% |
North America**
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Rolled products: |
698 |
801 |
15% |
710 |
869 |
22% |
|
Hot-rolled strip and plate |
600 |
713 |
19% |
622 |
790 |
27% |
|
Cold-rolled sheet |
725 |
786 |
8% |
702 |
843 |
20% |
|
Galvanised and other metallic coated sheet |
874 |
932 |
7% |
863 |
979 |
13% |
** SNA, Severcorr (consolidated beginning Q1 2008), Sparrows Point (consolidated beginning Q2 2008)
Lucchini
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Semifinished products |
584 |
653 |
12% |
592 |
728 |
23% |
|
Rolled products: |
969 |
1,232 |
27% |
1,132 |
1,330 |
17% |
|
Long products |
1,004 |
1,271 |
27% |
1,163 |
1,375 |
18% |
|
Rails |
735 |
945 |
29% |
901 |
990 |
10% |
|
Downstream products: |
2,632 |
1,172 |
-55% |
1,121 |
1,207 |
8% |
|
Metalware products |
2,571 |
1,172 |
-54% |
1,121 |
1,207 |
8% |
|
Wheels, axles, tires |
2,683 |
0 |
n.a. |
0 |
0 |
n.a. |
Metalware
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Downstream products: |
||||||
|
Metalware products |
875 |
1,213 |
39% |
1,053 |
1,365 |
30% |
Izhora pipe mill
|
Sales prices (EXW), USD/tonne |
H1Ā 2007 |
H1Ā 2008 |
H1Ā 2008/ H1Ā 2007 |
Q1Ā 2008 |
Q2Ā 2008 |
Q2Ā 2008/ Q1 2008 |
|
Downstream products: |
||||||
|
Large diameter pipes |
1,494 |
2,335 |
56% |
2,051 |
2,543 |
24% |
Comments
The sale of KuzbassugolĀ wasĀ completedĀ inĀ the beginning of April. The impact of the disposal was almost fully offset by a 19% increase in coal production at Vorkutaugol in Q2,Ā resulting inĀ total coal productionĀ declineĀ by only 4% quarter-on-quarter. The 19% rise in coal production at Vorkutaugol was primarily due to the solving of geological problems which hadĀ impactedĀ coal production in Q1. Vorkutaugol also changed its product mix in Q2 inĀ favourĀ of coking coal concentrate. The production of low grade coal and steam coal reduced due to a seasonalĀ declineĀ in consumption.
Production of iron ore was stable in Q2. Iron ore concentrate output at Olkon rose by 11% and the production of iron ore pellets at Karelsky Okatysh reduced by 4%.Ā Net of intercompanyĀ salesĀ pellets sales reduced by 30% and iron ore concentrate sales dropped by 44%. This was due to an increase in intercompany pellets sales (particularlyĀ dueĀ to shipments to Lucchini's mills in Europe) and a temporary fall in iron ore concentrate shipments to the Cherepovets steel mill in Q1Ā resulting inĀ OlkonĀ sales toĀ the market. FollowingĀ CherepovetsĀ steel mill's concentrate consumption growth, Olkon increased intercompany shipments in Q2.
Production of gold grew by 26% quarter-on-quarter due to seasonal factors.Ā The increase mostly came fromĀ Aprelkovo and CelticĀ mines.
Production of crude steel at Russian Steel decreased by 3% due to repair works in a converter shop and blast furnaceĀ ā4 resulting in a 14% fall in the production of semifinished products (mainly slabs). Production of all other products (with the exception of metalware products) increased. Production of hot rolled strip and plates increased the most - by 9% quarter-on-quarter.
Production of crude steel in North America rose significantly, by 85% quarter-on-quarter. The acquisition of Sparrows Point, completed in Q2, contributed to this. Production atĀ DearbornĀ andĀ ColumbusĀ increased by 32% and 12% respectively. This was due to favorable pricing and increased demand in North America as well asĀ the continuing ramp-up of Blast furnace "C"Ā atĀ Dearborn.
Production of crude steel at Lucchini fell by 2%, resulting in a slight reduction of slab and rails production, while long products (especially wire rods) throughput rose by 7%.
With repair worksĀ completedĀ at Izhora Pipe mill in Q1Ā theĀ productionĀ ofĀ large diameter pipesĀ increasedĀ by 39%Ā in Q2 2008.
Weighted average selling prices increased across the business, with the exception of gold, which fell by 4% reflecting the relative volatility of gold prices in the market. Severstal steel prices have changed in line with those in the wider steel market. The biggest growth (56%) came from long products at Russian Steel. The appreciation of the Russian ruble also played a role.
Note:
Semifinished products include slabs, billets, ingots, steel casting and forgings.
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