Higher crude steel production was explained by better production efficiency following the launch of ladle furnace no. 2 and higher output at the Balakovo mini-mill. Consolidated steel products sale volumes in 2018 grew 2% on year to 11.8 million mt. The share of high value-added products was 46%, the company said.
Last year Severstal saw a particularly strong growth in the sales of the galvanized and metallic-coated coil, which at 835,000 mt were a 28% jump on the year. The increase follows the launch of a new production line for polymer-coated rolled steel products at Cherepovets Steel Mill Metal Coating Workshop no. 3 at the end of 2017.
The company also raised semi-products sales by 34% in 2018, to 695,000 mt. In the last quarter, the sales of semis jumped 62% on Q3, to 157,000 mt. This was explained by “the completion of a series of repairs and, as a consequence, the growth of production and sales compared with previous periods,” a Severstal spokeswoman said.
In total, Severstal sold 8.72 million mt of finished rolled products in 2018, up 2% on 2017. Small declines in sales of hot-rolled, cold-rolled, and color-coated coils were compensated by an increase in the hot-rolled plate, galvanized and metallic-coated coil and long products.
Average selling prices for the majority of steel products grew substantially, by 5%-12% during 2018, reflecting global trends as well as Severstal’s sales and marketing initiatives, the steelmaker said.
However, selling prices declined in the fourth-quarter of 2018 in line with global benchmarks, the company said.