Severstal reports Q1 2023 operational results

Severstal announces that in Q1 2023 crude steel production was almost flat qoq and stood at 2.7 mln tonnes (-1% qoq). Consolidated steel sales followed production dynamics and decreased slightly, by 1% qoq to 2.77 mln tonnes.

Production: Hot metal output decreased by 4% qoq to 2.72 mln tonnes on the back of planned repairs on BF Nos. 3, 4 and 5. Crude steel production, however, was lower by only 1% qoq and amounted to 2.7 mln tonnes due to increased crude steel output at EAF facilities.

Steel sales followed production and were lower by 1% at 2.77 mln tonnes. However, sales of semi-finished products increased to 0.3 mln tonnes (+4% qoq) due to strong pig iron sales. Commercial steel sales (HRC and long steel) declined by 6% qoq to 1.28 mln tonnes, mainly due to a decrease in HRC demand during the winter season.
Sales of high-value-added (HVA) products grew by 3% qoq to 1.19 mln tonnes. The total share of HVA products in the product mix increased to 43% (+2 ppt qoq).

Raw material sales: Iron ore sales to third parties decreased to 0.37 mln tonnes (-24% qoq), mainly due to the redistribution of iron ore concentrate sales to the Company’s own assets.

We continue transforming our system for occupational health and safety to make the working environment safer for employees. In the reporting period, a new project called VZOR (Involve, Declare, Provide, Develop) was launched. It is expected to be one of the drivers of further improvement of our LTIFR indicator.

The Q1 2023 LTIFR for our employees and contractors declined by 4% qoq and reached 0.46 (-51% yoy).

The LTIFR for only our employees decreased to 0.36 (-33% qoq, -57% yoy).