Severstal increases sales through distribution arm

Russian steelmaker Severstal’s Distribution arm increased sales 31% on-year in 2018 to 2.3 million tonnes, the company says. The steelmaker sold 23% of all its saleable products through the channel, with Russian sales increasing by 10% on-year to almost 1mt,Kallanish notes.

Sales volumes through Severstal Distribution to Northern and Central and Eastern Europe increased by 50% and exceeded 1mt. The arm’s function in European sales is to work closely with large consumers, which require an individualised approach, including complex solutions, Severstal says. This was achieved partially through expanding the company’s distribution and storage solutions in Europe.

Eastern European buyers benefitted from new logistical solutions, which helped to reduce transport costs. Severstal also started manufacturing industrial pipes at its Riga facilities, it says.

This year the company will continue to expand the range of offers to its CIS and European buyers through the distribution arm. This will include hot rolled coil of 4-16mm thickness, galvanised with improved three-valence chrome coating and also a range of flat products for white goods production. 

Severstal sold 11.18mt of steel products in 2018, 2% more than a year earlier, ramping up European sales considerably, especially in the last quarter, and reducing sales to the Middle East.