PAO Severstal reported consolidated sales and production results for the fourth quarter and full year of 2018. Consolidated steel product sales increased 2% q/q to 2.76 millilon tonnes in fourth quarter 2018, following short-term maintenance works at rolling-mill facilities in the previous quarter. The share of domestic sales declined to 62% as a result of seasonal slowdown in domestic consumption. The share of high value-added (HVA) products within the sales portfolio decreased 44% (third quarter of 2018: 48%), driven by an increase in semi-finished and hot rolled coil sales and declining sales volumes of large diameter pipes, colour coated and hot rolled thick plate. Coking coal concentrate sales volumes from Vorkutaugol continued to grow, increasing 9% quarter on quarter following 27% increase in third quarter. This was largely driven by higher production volumes at the Zapolyarnaya and Komsomolskaya mines. Iron ore pellet sales increased 15% to 2.94 million tonnes as a result of higher production volumes and stock sell-off in fourth quarter.

Hot metal output decreased 3% quarter on quarter in fourth quarter 2018 to 2.23 million tonnes, due to BF#2 short-term maintenance works. Crude steel production declined by 4% to 2.94 million tonnes reflecting a decrease in pig iron production and seasonal slowdown of production at Balakovo mini-mill.

Hot metal output remained almost unchanged in 2018 at 9.15 million tonnes, however crude steel production increased 3% to 12.04 million tonnes (fiscal year 2017: 11.65 million tonnes). This was driven by an improvement in steel production efficiency following the launch of ladle furnace #2 and higher production volumes from Balakovo mini-mill.

For the year, the company reported steel product sales increased 2% year on year to 11.18 million tonnes against 10.92 million tonnes a year ago, reflecting crude steel production growth. The higher iron ore concentrate sales year on year for fiscal year 2018 partially reflects the consolidation of the Yakovlevskiy mine and an uptick in production volumes at Olcon. Coking coal concentrate sales volumes at Vorkutaugol increased by 2% to 3.37 million tonnes in 2018.