This was mainly due to a decrease in economic activity in the construction industry and in mechanical engineering.
The company's operational and financial results for Q1 2025. Source: Severstal.
Measures to cool the economy, and in particular the high key interest rate, continued to put pressure on all major consumers of rolled metal, said Alexander Shevelev, CEO of Severstal Management, commenting on the results with which the company ended the first quarter.
"According to our estimates, steel consumption in Russia decreased by about 13% YoY. Against this background, the price of metal products decreased in the reporting quarter, and the drop in quotations for hot-rolled products was approximately 10%."Alexander Shevelev added that, given the start of the summer season and low inventories in retail chains, the company expects some recovery in financial performance in the next quarter amid a revival in demand. At the same time, the company sees that the market situation will remain difficult.
Illustrative photo: Severstal.
Severstal is a vertically integrated mining and metallurgical company, one of the largest steel producers in Russia. The key asset of the company is the Cherepovets Metallurgical Plant. The company's production assets are concentrated in Russia. The shares are traded on the Moscow Stock Exchange. In 2024, the company produced 10.4 million tons of steel.
