Europe demand lifts Severstal Distribution sales

Severstal Distribution increased sales in the first half of the year, the company says. Shipments amounted to 1.3 million tonnes, up by 8% on-year, Kallanish notes.

Severstal’s sales in Russia increased to 580,000 tonnes, up by 4% on-year. Shipments to Europe amounted to 740,000t, up by 13% on-year.

“We have created a large distribution centre in Vologda for the prompt supply of our regional warehouses with rolled metal,” says Severstal Distribution head Timur Yudichev. “This year we launched a programme to supply consumers from the small and medium-sized business segment. The pilot program started in Moscow.”

Exports of rolled products from Russia to the EU are limited by safeguard quotas, and supply to the domestic market is often more cost-effective for Severstal, the company claims.

Therefore, the European division of the distribution network focuses on sales of steel products with increased added value. These include products with polymer and zinc coating, as well as steel certified to be sold in the Nordic countries.

“We strive to become the first-choice company for our clients in the Baltic States, Finland, Sweden, Germany, Belgium, the Netherlands, Poland, Czech Republic, Slovakia,” says Timur Yudichev.

Severstal’s output of crude steel and steel products decreased in the second quarter to 2.81mt, down by -2% on-year (see Kallanish passim). Hot metal output decreased -3% each on-quarter and on-year to 2.33mt, following the short-term upgrades of blast furnaces No.1, No.4 and No.5.