Russian steelmaker Severstal expects domestic demand to fall 5-7% in 2020 compared to 2019 as a result of the coronavirus outbreak, but says the increase in exports has allowed it to continue production to full capacity.
Severstal CFO Alexey Kulichenko said: “The second quarter will be the most difficult for us, as well as for the entire market. Although shipments in the second quarter may only fall a few percent from the previous quarter, lower prices will reduce revenues. Severstal expects its export share to reach 48-50% in the second quarter, up from 45% in the first quarter, as some overseas producers cut capacity. "
He also said that the company's largest customers were in the construction sector, which was less affected by the pandemic than the auto industry.
Mr Kulichenko estimates that global steelmaking capacity has dropped 74 million tonnes as the coronavirus outbreak has led to a drop in economic activity.
Severstal plans to increase steel exports
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Azovpromstal® 17 June 2020 г. 12:00 |
