PAO Severstal (MOEX: CHMF; LSE: SVST), one of the world's largest vertically integrated metals and mining companies, today reports its operating results for the third quarter and nine months of 2020.

HIGHLIGHTS (GROUP), Q3 2020

• The volume of pig iron production increased in Q3. 2020 up 3% qoq to 2.40 mln tonnes (Q2 2020: 2.33 mln tonnes), due to the completion of short-term repairs of blast furnaces in the previous quarter. Steel production increased by 3% to 2.89 mln. 2020: 2.81 mln tonnes) due to increased production of pig iron.
• Consolidated sales of steel products increased in Q3. 2020, up 18% qoq to 3.01mt (Q2 2020: 2.55mt) due to increased steel production, a reduced share of long-term export sales and a decrease in stock.
• The company increased the share of steel products sales in the domestic market to 63% (Q2 2020: 56%) due to the recovery of domestic consumption in Russia in Q3. 2020.
• The share of HVA products was 49% (Q2 2020: 43%), driven by deferred demand for HVA products and a reduction in stocks compared to the previous quarter.
• Sales of coking coal concentrate at Vorkutaugol decreased by 5% qoq to 1.22 mln tonnes due to lower concentrate production and reduced rock mass production at Zapolyarnaya mine.
• Sales of iron ore pellets increased by 3% qoq and amounted to 2.61 mt (Q2 2020: 2.53 mt), reflecting increased production of iron ore pellets and lower inventories.
• Sales of iron ore concentrate increased by 3% to 1.96 million tonnes (Q2 2020: 1.90 million tonnes), driven by increased production at Karelsky Okatysh and Olkon.

KEY POINTS (GROUP), 9 months ... 2020

• Pig iron production volume for 9 months. 2020 remained virtually unchanged compared to the same period last year and amounted to 7.14 million tonnes (9M 2019: 7.13 million tonnes). Steel production decreased to 8.55 mt (9M 2019: 9.13 mt), mainly due to a decrease in electric steel production following the sale of the Balakovo long bar in July 2019.
• Share of high value-added products in 9 months 2020 remained high at 45%. The share of sales in the domestic market was 58%, which is lower than the figure for 2019 (9M 2019: 67%). This is due to the weakening of demand in the domestic market after reaching peaks in the previous year, as well as the sale of the Balakovo long-range mill, which was mainly focused on sales to Russian customers.
• Average sales prices for steel products decreased over 9 months. 2020 from 10 to 19% year-on-year, depending on the product category, following global trends.
• Sales of iron ore concentrate increased by 14% y-o-y to 5.33 million tonnes (9M 2019 : 4.66 million tonnes) amid growing production volumes at Karelsky Okatysh and Yakovlevsky mine. The company expects production of iron ore concentrate at the Yakovlevsky mine to reach 2 million tonnes in 2020.
• Sales of coking concentrate of coal at Vorkutaugol increased by 3% compared to the same period last year.

MAIN INDICATORS FOR PRODUCTION AND SALES

[/b]

[b]

CONSOLIDATED SALES (EXCLUDING INTERNAL SALES)

AVERAGE PRICES SALES "SEVERSTAL RUSSIAN STEEL "

Notes:

1. Sales prices are based on EXW ("from plant ");
2. Segment sales figures include intra-company sales and; 3) Semi-finished products include commercial pig iron, slabs, billets, ingots, steel casting and stamping;
3. Large diameter pipes include pipes with diameters ranging from 820 to 1420mm;
4. In case of any discrepancy between the Russian and English versions of the press release, the English text takes precedence.

The full version of the press release is available at .

Полная версия