Severstal reduced steel production by 18% in the second quarter of 2022 to 2.403 million tons of steel. The company, which produced 5.325 million tons of steel for the first half of the year, reduced steel production by 7% compared to a year earlier.
Consolidated sales of the group’s steel products decreased by 17% to 2.269 million tons in the last quarter due to the limited access to export markets and declining demand in the local market.
Russian steel is to face even worse
The experts tend to believe that the third quarter will be even worse for the steelmakers due to export problems for Russian enterprises, expensive raw materials and lower demand in the market.
Severstal’s capacity utilization fell to 75% and became the first Russian steel company to be hit by EU sanctions due to Russia’s special military campaign in Ukraine.
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