Trading Statement

30 Apr 2008 17:05

OAO Severstal30 April 2008 Severstal Releases Q1 2008 Operational Results PRODUCTION VOLUMES Q1 2008 overview Production of crude steel in Q1 2008 amounted to 4.8 million tonnes that is 7%higher than it was in Q1 2007. Beginning Q1 2008 Severstal has consolidatedSeveCorr production volumes that resulted in growth of crude steel production by8% on consolidated basis and 41% for Severstal North America in Q1 2008 over Q42007. Production of rolled products in Q1 2008 was 5% higher than in Q1 2007 and 8%higher than in Q4 2007. Production of iron pellets (net of intercompany sales) in Q1 2008 reached 1.3million tonnes, or 49% higher compared with Q1 2007. Total production of ironore pellets was 14% higher than in Q1 2007. In Q1 2008 Mining segment sold 223thousand tonnes of iron ore concentrate to customers, non-related withSeverstal. Total production of coal concentrate was down 22% in Q1 2008 compared with thesame period of 2007, while production of this material net of intercompany saleswas down by 58%. Consolidated production of hot metal and crude steel Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Hot metal: totalthroughput 3 283 274 3 272 800 0% 3 312 632 3 272 800 -1%Crude steel:total throughput 4 501 025 4 794 863 7% 4 437 934 4 794 863 8% Consolidated production (net of intercompany sales) Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Production for sale, metric tonnesCoal: 1 442 001 755 982 -48% 1 071 447 755 982 -29%Coking coalconcentrate 696 385 289 337 -58% 548 385 289 337 -47%Coking coal 47 729 44 617 -7% 123 182 44 617 -64%Steam coal 697 887 422 028 -40% 399 880 422 028 6%Iron ore: 881 407 1 534 309 74% 1 244826 1 534 309 23%Iron ore pellets 881 407 1 310 939 49% 1 152932 1 310 939 14%Iron oreconcentrate 0 223 371 - 91893 223 371 143%Gold 0 900 - 0 900 -Semifinishedproducts 464 761 521 542 12% 510 281 521 542 2%Rolled products: 3 362 559 3 547 463 5% 3 288138 3 547 463 8%Hot-rolled stripand plate 1494 144 1571 522 5% 1 443466 1571 522 9%Cold-rolledsheet 474 156 518 667 9% 503090 518 667 3%Galvanised andother metalliccoated sheet 374 122 394 276 5% 354347 394 276 11%Color coatedsheet 59 391 58 467 -2% 46723 58 467 25%Long products 883 546 916 633 4% 852552 916 633 8%Rails 77 200 87 899 14% 87961 87 899 0%Downstreamproducts: 467 749 469 816 0% 501 887 469 816 -6%Metalwareproducts 284 805 269 745 -5% 270 564 269 745 0%Large diameterpipes 43 111 78 049 81% 113448 78 049 -31%Other tubes andpipes, formedshapes 116 796 122 023 4% 117875 122 023 4%Wheels, axles,tires 23 037 0 -100% 0 0 - Segmental information Mining Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Production for sale, metric tonnesCoal: 2 740 390 1 814 800 -34% 2 352 829 1 814 800 -23%Coking coalconcentrate 1 517 181 1 185 770 -22% 1 491 359 1 185 770 -20%Coking coal 525 322 207 001 -61% 461 590 207 001 -55%Steam coal 697 887 422 028 -40% 399 880 422 028 6%Iron ore: 3 406 034 3 778 094 11% 3 854 344 3 778 094 -2%Iron ore pellets 2 295 103 2 627 162 14% 2 678 107 2 627 162 -2%Iron oreconcentrate 1 110 931 1 150 932 4% 1 176 237 1 150 932 -2%Gold 0 900 - 0 900 0 Russian Steel Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Hot metal: totalthroughput 2 164 014 2 311 162 7% 2 251229 2 311 162 3%Crude steel:total throughput 2 948 876 3 186 508 8% 3 060 197 3 186 508 4%Production for sale, metric tonnesSemifinishedproducts 226 860 239 420 6% 241 333 239 420 -1%Rolled products: 2 268 785 2 393 822 6% 2 392 747 2 393 822 0%Hot-rolled stripand plate 1 176 581 1 272 165 8% 1 284 851 1 272 165 -1%Cold-rolledsheet 352 233 367 800 4% 369 764 367 800 -1%Galvanised andother metalliccoated sheet 191 360 181 178 -5% 180 135 181 178 1%Color coatedsheet 59 391 58 467 -2% 46 723 58 467 25%Long products 489 220 514 213 5% 511 274 514 213 1%Downstreamproducts: 124 885 133 924 7% 130 884 133 924 2%Metalwareproducts 8 089 11 901 47% 13 009 11 901 -9%Other tubes andpipes, formedshapes 116 796 122 023 4% 117 875 122 023 4% SNA Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Hot metal: totalthroughput 493 510 331 488 -33% 429 525 331 488 -23%Crude steel:total throughput 593 563 711 443 20% 506 241 711 443 41%Production for sale, metric tonnesRolled products: 654 321 746 983 14% 573 017 746 983 30%Hot-rolled stripand plate 349 636 383 017 10% 265 478 383 017 44%Cold-rolledsheet 121 923 150 867 24% 133 326 150 867 13%Galvanised andother metalliccoated 182 762 213 098 17% 174 212 213 098 22%sheet Lucchini Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Hot metal andpig iron: totalthroughput 625 750 630 150 1% 631 878 630 150 0%Crude steel:total throughput 958 586 896 912 -6% 871 496 896 912 3%Production for sale, metric tonnesSemifinishedproducts 284 456 282 121 -1% 311 933 282 121 -10%Rolled products: 634 437 634 756 0% 576 229 634 756 10%Long products 557 237 546 857 -2% 488 268 546 857 12%Rails 77 200 87 899 14% 87 961 87 899 0%Downstreamproducts: 33 477 6 653 -80% 4 364 6 653 52%Metalwareproducts 10 440 6 653 -36% 4 364 6 653 52%Wheels, axles,tires 23 037 0 -100% 0 0 - Metalware Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Production for sale, metric tonnesDownstream products:Metalwareproducts 266 276 251 191 -6% 253 191 251 191 -1% Izhora pipe mill Total throughput, metric tonnes Q1 2007 Q1 2008 Q1 2008/ Q4 2007 Q1 2008 Q1 2008/ Q1 2007 Q4 2007Production for sale, metric tonnesDownstream products:Large diameterpipes 43 111 78 049 81% 113 448 78 049 -31% AVERAGE SELLING PRICES Consolidated sales Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Coal: 54 91 69% 67 91 36%Coking coalconcentrate 81 123 52% 90 123 37%Coking coal 31 47 52% 32 47 47%Steam coal 26 32 23% 30 32 7%Iron ore: 71 91 28% 74 91 23%Iron ore pellets 76 97 28% 77 97 26%Iron oreconcentrate 61 77 26% 65 77 18%Gold 0 29 671 - 0 29 671 -Semifinished productsRolled products: 684 769 12% 730 769 5%Hot-rolled stripand plate 561 640 14% 633 640 1%Cold-rolledsheet 650 686 6% 674 686 2%Galvanised andother metalliccoated sheet 879 869 -1% 865 869 0%Color coatedsheet 1 149 1 192 4% 1 170 1 192 2%Long products 772 900 17% 810 900 11%Rails 824 901 9% 790 901 14%Downstreamproducts: 969 1 148 18% 1 160 1 148 -1%Metalwareproducts 893 1 045 17% 999 1 045 5%Large diameterpipes 1 592 2 051 29% 1 900 2 051 8%Other tubes andpipes, formedshapes 729 810 11% 795 810 2%Wheels, axles,tires 2 492 0 - 0 0 - Mining Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Coal: 54 91 69% 67 91 36%Coking coalconcentrate 81 123 52% 90 123 37%Coking coal 31 47 52% 32 47 47%Steam coal 26 32 23% 30 32 7%Iron ore: 71 91 28% 74 91 23%Iron ore pellets 76 97 28% 77 97 26%Iron oreconcentrate 61 77 26% 65 77 18%Gold 0 29 671 - 0 29 671 - Russian Steel Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Semifinishedproducts 379 502 32% 459 502 9%Rolled products: 613 687 12% 664 687 3%Hot-rolled stripand plate 553 665 20% 639 665 4%Cold-rolledsheet 629 680 8% 663 680 3%Galvanised andother metalliccoated sheet 884 877 -1% 875 877 0%Color coatedsheet 1 149 1 192 4% 1 170 1 192 2%Long products 544 618 14% 563 618 10%Downstreamproducts: 734 812 11% 797 812 2%Metalwareproducts 812 837 3% 811 837 3%Other tubes andpipes, formedshapes 729 810 11% 795 810 2% SNA Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Rolled products: 689 710 3% 703 710 1%Hot-rolled stripand plate 589 622 6% 603 622 3%Cold-rolledsheet 725 702 -3% 706 702 -1%Galvanised andother metalliccoated sheet 873 863 -1% 855 863 1% Lucchini Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Semifinishedproducts 588 592 1% 522 592 13%Rolled products: 960 1 132 18% 1 016 1 132 11%Long products 978 1 163 19% 1 054 1 163 10%Rails 824 901 9% 790 901 14%Downstreamproducts: 2 545 1 121 -56% 2 564 1 121 -56%Metalwareproducts 2 627 1 121 -57% 2 564 1 121 -56%Wheels, axles,tires 2 492 0 - 0 0 - Metalware Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Downstream products:Metalwareproducts 825 1 053 28% 982 1 053 7% Izhora pipe mill Sales prices (EXW), USD/tonne Q1 2007 Q1 2008 Q1 2008/ Q4 Q1 Q1 2008 2007 2008 / Q1 2007 Q4 2007Downstream products:Large diameterpipes 1 592 2 051 29% 1 900 2 051 8% Note: Semifinished products include slabs, billets, ingots, steel casting andforgings. 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