Severstal Distribution increases sales despite weaker demand


Severstal Distribution, the service and trading network of Severstal Russian Steel’s division that operates in the CIS and the EU, increased its January-June 2016 sales by 9% year-on-year to 770,000 metric tons.

This represents roughly 15% of the division’s total 5.26 million mt steel sales in the first half of this year, according to results posted by Severstal Distribution.

The trading firm managed to increase sales, despite the decline in Russian steel demand, thanks to a larger variety of processing capabilities and faster, cheaper transport services.

Severstal Distribution said it has expanded its service range because, in addition to its own steel service centers, it has also started to use the metal processing facilities of its partner firms. It has also partnered with more trucking companies in order to cut delivery times and be able to provide its clients with more competitive shipping costs.

Severstal Distribution unites five regional units based in Russia, Belarus, Ukraine, Latvia and Poland.

— Ekaterina Bouckley