Wed Jan 18, 2012
MOSCOW Jan 18 (Reuters) - Russian steelmaker Severstal's Nord Gold mining unit said it produced 204,000 gold equivalent ounces in the fourth quarter, up 14 percent on Q3.
The gold unit, which plans to list its shares in London on Thursday following a share swap with parent-company Severstal, in December lowered its 2011 production forecast to 745,000-755,000 gold equivalent ounces.
Nord Gold's final total for the year was 754,000 ounces, up 28 percent from 2010.
Russia's second-largest steelmaker in November announced that it would list Nord Gold global depository receipts (GDRs) in London if Severstal shareholders representing at least 5 percent of Nord Gold share capital agreed to exchange their Severstal shares.
Severstal, controlled by billionaire Alexei Mordashov, said investors exchanged a total of 20,374,385 securities, equal to 10.6 percent of Nord Gold's share capital, and that it expects to list the GDRs on Jan. 19.
Showing posts with label Russian steelmakers. Show all posts
Showing posts with label Russian steelmakers. Show all posts
Wednesday, January 18, 2012
Thursday, October 27, 2011
Severstal’s crude steel output continues to increase in Q3
Thu,27 October 2011
Russian steelmaker Severstal has announced its operational results for the third quarter of 2011. Accordingly, Severstal's crude steel production increased by four percent quarter on quarter to 4.01 million mt in the third quarter.
While Severstal's Russian Steel division reported a 17 percent increase in rolled steel production in the given period, Severstal North America posted a 31 percent increase, both compared to the previous quarter. On the other hand, during the third quarter the mining division of the company, Severstal Resources, increased its iron ore production by 10 percent quarter on quarter to 4.12 million mt.
As regards intercompany sales, Severstal stated that in the third quarter coal sales decreased by two percent to 1.70 million mt, iron ore sales increased by 38 percent to 1.83 million mt and rolled product sales increased by 21 percent to 3.29 million mt, all compared to the previous quarter.
Tags: iron ore , crude steel , coking coal , USA , Russia , Severstal , raw mat , flats , CIS , North America , steelmaking , production
sourced: Steel Orbis
Russian steelmaker Severstal has announced its operational results for the third quarter of 2011. Accordingly, Severstal's crude steel production increased by four percent quarter on quarter to 4.01 million mt in the third quarter.
While Severstal's Russian Steel division reported a 17 percent increase in rolled steel production in the given period, Severstal North America posted a 31 percent increase, both compared to the previous quarter. On the other hand, during the third quarter the mining division of the company, Severstal Resources, increased its iron ore production by 10 percent quarter on quarter to 4.12 million mt.
As regards intercompany sales, Severstal stated that in the third quarter coal sales decreased by two percent to 1.70 million mt, iron ore sales increased by 38 percent to 1.83 million mt and rolled product sales increased by 21 percent to 3.29 million mt, all compared to the previous quarter.
Tags: iron ore , crude steel , coking coal , USA , Russia , Severstal , raw mat , flats , CIS , North America , steelmaking , production
sourced: Steel Orbis
Monday, October 17, 2011
Russia's Evraz seeks UK listing, share exchange
Mon Oct 17, 2011
* Steel company seeking entry to FTSE 100
* Seeks more liquidity, broader shareholder base
* Shares rise 8 pct in early trading
By Megan Davies
MOSCOW, Oct 17 (Reuters) - Russian steelmaker Evraz , part-owned by billionaire Roman Abramovich, said on Monday it would move its domicile to Britain, where it is seeking a premium listing on the London Stock Exchange and inclusion in the FTSE 100 Index.
The move would give it a broader shareholder base, better long-term access to capital and improved liquidity, Evraz said in a presentation to investors.
The company, with a market capitalization of more than $8 billion, is the third Russian company after miners Polyus Gold and Polymetal to announce plans for a London premium listing and FTSE 100 inclusion in recent weeks. .
Resources and metals stocks already dominate the London blue-chip index, accounting for approaching one third of the FTSE by market cap.
Evraz plans a share exchange offer to complete the move, where London-listed Evraz Plc will buy up to 100 percent of the share capital of Evraz Group S.A.
Evraz is currently a Luxembourg-domiciled company and its shares are traded in London in the form of global depositary receipts.
The company's shares rose 8.4 percent on the London Stock Exchange on Monday, adding to a rise of 19 percent for the month so far, after it announced a special dividend last week.
Still, shares are trading at about half the level they were at the beginning of the year.
Under the swap, shareholders will receive nine new shares in Evraz for each existing share they now own.
Evraz said it expected to be included in the FTSE 100 Index and would be the only steel stock in the UK share market.
Rival Tata Steel is listed in Mumbai and ArcelorMittal is listed in Luxembourg.
"We now have a free float of about 25 percent, which is enough for a premium listing," Finance Director Giacomo Baizini told reporters. "Under the deal, the company has no plans to place new shares, especially in current market conditions."
Evraz said that, following the move, it would seek to maintain a long-term average dividend payout ratio of at least 25 percent of its consolidated net profit.
Biggest shareholder Lanebrook, which currently owns 72.25 percent of the company, has agreed to accept the offer, the company said.
Evraz said it planned a management roadshow for the next two weeks and that final acceptances of the offer were due by Nov. 4. It expects to start trading on the London Stock Exchange on Nov. 7 and to be included in the FTSE at the index's next reshuffle on Dec. 19.
Morgan Stanley and Credit Suisse are acting as joint sponsors to Evraz, the company said.
Evraz also announced on Monday its crude steel output rose by 4 percent year-on-year in the third quarter of this year.
(sourced Reuters)
* Steel company seeking entry to FTSE 100
* Seeks more liquidity, broader shareholder base
* Shares rise 8 pct in early trading
By Megan Davies
MOSCOW, Oct 17 (Reuters) - Russian steelmaker Evraz , part-owned by billionaire Roman Abramovich, said on Monday it would move its domicile to Britain, where it is seeking a premium listing on the London Stock Exchange and inclusion in the FTSE 100 Index.
The move would give it a broader shareholder base, better long-term access to capital and improved liquidity, Evraz said in a presentation to investors.
The company, with a market capitalization of more than $8 billion, is the third Russian company after miners Polyus Gold and Polymetal to announce plans for a London premium listing and FTSE 100 inclusion in recent weeks. .
Resources and metals stocks already dominate the London blue-chip index, accounting for approaching one third of the FTSE by market cap.
Evraz plans a share exchange offer to complete the move, where London-listed Evraz Plc will buy up to 100 percent of the share capital of Evraz Group S.A.
Evraz is currently a Luxembourg-domiciled company and its shares are traded in London in the form of global depositary receipts.
The company's shares rose 8.4 percent on the London Stock Exchange on Monday, adding to a rise of 19 percent for the month so far, after it announced a special dividend last week.
Still, shares are trading at about half the level they were at the beginning of the year.
Under the swap, shareholders will receive nine new shares in Evraz for each existing share they now own.
Evraz said it expected to be included in the FTSE 100 Index and would be the only steel stock in the UK share market.
Rival Tata Steel is listed in Mumbai and ArcelorMittal is listed in Luxembourg.
"We now have a free float of about 25 percent, which is enough for a premium listing," Finance Director Giacomo Baizini told reporters. "Under the deal, the company has no plans to place new shares, especially in current market conditions."
Evraz said that, following the move, it would seek to maintain a long-term average dividend payout ratio of at least 25 percent of its consolidated net profit.
Biggest shareholder Lanebrook, which currently owns 72.25 percent of the company, has agreed to accept the offer, the company said.
Evraz said it planned a management roadshow for the next two weeks and that final acceptances of the offer were due by Nov. 4. It expects to start trading on the London Stock Exchange on Nov. 7 and to be included in the FTSE at the index's next reshuffle on Dec. 19.
Morgan Stanley and Credit Suisse are acting as joint sponsors to Evraz, the company said.
Evraz also announced on Monday its crude steel output rose by 4 percent year-on-year in the third quarter of this year.
(sourced Reuters)
Friday, October 14, 2011
Severstal to supply rolled steel for Kia Rio model
Friday, 14 October 2011
Russian steelmaker Severstal has begun to supply rolled steel for making front roof panels for the new Kia Rio model. Severstal earlier reached a similar supply agreement for another car, namely, the Hyundai Solaris (sedan and hatchback).
Over the first nine months of 2011, Severstal delivered a total of more than 4,500 mt of rolled steel to the Hyundai plant in St. Petersburg and obtained approval for 47 parts for the Hyundai Solaris (sedan and hatchback) and the Kia Rio sedan. The rolled steel delivered to the Hyundai plant meets the HYUNDAI-KIA GLOBAL MATERIAL GUIDE standard.
Severstal has invested over Ruble 634 million ($20.1 million) to improve its steel sheet quality for the automobile industry over the last two years. Severstal's innovations have been aimed at improving automobile body sheet quality, while its innovative developments have been confirmed by 88 patented technical solutions and 10 awards of international car showrooms.
Tags: Russia , CIS , Severstal , production , automotive , steelmaking (sourced steelorbis)
Russian steelmaker Severstal has begun to supply rolled steel for making front roof panels for the new Kia Rio model. Severstal earlier reached a similar supply agreement for another car, namely, the Hyundai Solaris (sedan and hatchback).
Over the first nine months of 2011, Severstal delivered a total of more than 4,500 mt of rolled steel to the Hyundai plant in St. Petersburg and obtained approval for 47 parts for the Hyundai Solaris (sedan and hatchback) and the Kia Rio sedan. The rolled steel delivered to the Hyundai plant meets the HYUNDAI-KIA GLOBAL MATERIAL GUIDE standard.
Severstal has invested over Ruble 634 million ($20.1 million) to improve its steel sheet quality for the automobile industry over the last two years. Severstal's innovations have been aimed at improving automobile body sheet quality, while its innovative developments have been confirmed by 88 patented technical solutions and 10 awards of international car showrooms.
Tags: Russia , CIS , Severstal , production , automotive , steelmaking (sourced steelorbis)
Wednesday, October 12, 2011
Russia Ashinskiy sees steel output rise 12pct in Jan to Sept
Wednesday, 12 Oct 2011
According to results for the January to September period of the current year, Russian steelmaker Ashinskiy Metallurgical Works produced 588,000 tonnes of steel in the given period, showing a 12.3%YoY. This production figure includes 577,700 tonnes of slab up by 14.5%YoY.
During the period in question, Ashinskiy Metallurgical Works produced 472,500 tonnes of rolled steel up by 4.3% compared to January to September 2010.
(sourced from steelorbis)
According to results for the January to September period of the current year, Russian steelmaker Ashinskiy Metallurgical Works produced 588,000 tonnes of steel in the given period, showing a 12.3%YoY. This production figure includes 577,700 tonnes of slab up by 14.5%YoY.
During the period in question, Ashinskiy Metallurgical Works produced 472,500 tonnes of rolled steel up by 4.3% compared to January to September 2010.
(sourced from steelorbis)
Russia Evraz revives dividends, shares soar
Wed Oct 12, 2011
* H1 net $263 mln, Reuters poll forecast $614 mln
* H1 EBITDA $1.62 bln, poll forecast $1.65 bln
* Shares up more than 10 percent in London
* Will pay interim, special dividend
Oct 12 (Reuters) - Russian steelmaker Evraz on Wednesday announced its first interim dividends since the global financial crisis hit in 2008, sending its shares sharply higher despite missing estimates with its first half results.
"As a result of the 1H 2011 performance and the strength of our balance sheet the directors have decided to resume the payment of dividends to shareholders," chief financial officer Giacomo Baizini said in a statement.
"We are declaring an interim dividend of US$89 million or 34 percent of our net income in 1H 2011. We are also declaring the payment of a special dividend of $402 million."
The payout is equivalent to $0.60 a share, and the special dividend equals $2.70 a share.
At 1656 GMT, the shares were up 10.4 percent or $1.63 at $17.25.
Evraz, part-owned by billionaire Roman Abramovich, has improved its liquidity position this year by reducing total debt to $6.04 billion at the end of the first half, compared to $7.81 billion at the end of 2010.
Fitch Ratings last month upgraded Evraz's debt rating to 'BB-' from 'B+' on the back of the company's successful refinancing and debt reduction efforts.
"All in all, the much improved balance sheet with no significant short-term maturities makes the results decent and the company less vulnerable in case of weak market conditions," VTB analysts wrote in a note.
Although the shares surged, the company's first-half net profit and earnings before depreciation, taxation and amortisation (EBITDA) came in below market expectations.
First half net profit was $263 million, while analysts polled by Reuters expected $614 million, up from a year-earlier loss of $270 million.
Evraz also said one-off losses related to the conversion of debts had reduced the figure from $494 million.
First half EBITDA was $1.63 billion, up from $1.15 billion in the year-earlier period and just below the $1.65 billion poll forecast.
Sales were $8.4 billion, up from $6.38 billion and more than the $8.14 billion poll forecast.
CHALLENGING MARKET
Evraz also warned that it has experienced weaker trading in recent weeks due to lower production and export prices in part caused by the challenging global economic environment.
"The group's recent trading has been impacted by scheduled repairs, lower production volumes, a weak market environment in the Czech Republic and a change in product mix in South Africa," Chief Executive Alexander Frolov said in a statement.
"In addition, in recent weeks, there have been some decreases in export prices," he added.
In China, the world's leading steel producer, Shanghai rebar prices dropped 11 percent in September.
The company, which does not ship significant volumes there, earned 34 percent of its revenues in Russia last year and 24 percent in the Americas, with another 10 percent of sales to the European market.
In a separate interview with Reuters Insider, Baizini said the company is prepared for any market slowdown.
"We make sure that we are not producing any steel which is unsold," he said.
"We do keep monitoring the situation, early days, but we're ready for it."
(sourced Reuters)
* H1 net $263 mln, Reuters poll forecast $614 mln
* H1 EBITDA $1.62 bln, poll forecast $1.65 bln
* Shares up more than 10 percent in London
* Will pay interim, special dividend
Oct 12 (Reuters) - Russian steelmaker Evraz on Wednesday announced its first interim dividends since the global financial crisis hit in 2008, sending its shares sharply higher despite missing estimates with its first half results.
"As a result of the 1H 2011 performance and the strength of our balance sheet the directors have decided to resume the payment of dividends to shareholders," chief financial officer Giacomo Baizini said in a statement.
"We are declaring an interim dividend of US$89 million or 34 percent of our net income in 1H 2011. We are also declaring the payment of a special dividend of $402 million."
The payout is equivalent to $0.60 a share, and the special dividend equals $2.70 a share.
At 1656 GMT, the shares were up 10.4 percent or $1.63 at $17.25.
Evraz, part-owned by billionaire Roman Abramovich, has improved its liquidity position this year by reducing total debt to $6.04 billion at the end of the first half, compared to $7.81 billion at the end of 2010.
Fitch Ratings last month upgraded Evraz's debt rating to 'BB-' from 'B+' on the back of the company's successful refinancing and debt reduction efforts.
"All in all, the much improved balance sheet with no significant short-term maturities makes the results decent and the company less vulnerable in case of weak market conditions," VTB analysts wrote in a note.
Although the shares surged, the company's first-half net profit and earnings before depreciation, taxation and amortisation (EBITDA) came in below market expectations.
First half net profit was $263 million, while analysts polled by Reuters expected $614 million, up from a year-earlier loss of $270 million.
Evraz also said one-off losses related to the conversion of debts had reduced the figure from $494 million.
First half EBITDA was $1.63 billion, up from $1.15 billion in the year-earlier period and just below the $1.65 billion poll forecast.
Sales were $8.4 billion, up from $6.38 billion and more than the $8.14 billion poll forecast.
CHALLENGING MARKET
Evraz also warned that it has experienced weaker trading in recent weeks due to lower production and export prices in part caused by the challenging global economic environment.
"The group's recent trading has been impacted by scheduled repairs, lower production volumes, a weak market environment in the Czech Republic and a change in product mix in South Africa," Chief Executive Alexander Frolov said in a statement.
"In addition, in recent weeks, there have been some decreases in export prices," he added.
In China, the world's leading steel producer, Shanghai rebar prices dropped 11 percent in September.
The company, which does not ship significant volumes there, earned 34 percent of its revenues in Russia last year and 24 percent in the Americas, with another 10 percent of sales to the European market.
In a separate interview with Reuters Insider, Baizini said the company is prepared for any market slowdown.
"We make sure that we are not producing any steel which is unsold," he said.
"We do keep monitoring the situation, early days, but we're ready for it."
(sourced Reuters)
Saturday, October 8, 2011
Evraz UGOK iron ore concentrate and agglomerate production goes up in Sept
Saturday, 08 Oct 2011
Evraz UGOK a subsidiary of Russian mining and steel producing company Evraz Group increased its iron ore concentrate production by 6.4%YoY to 809,000 tonnes. Its output of agglomerate in the given period increased by 3%YoY to 137,000 tonnes.
In the January to September period of the current year, Evraz UGOK saw a 14.2%YoY growth in its iron ore concentrate production to 7.572 million tonnes and an 11%YoY increase in its agglomerate production to 1.376 million tonnes.
(Sourced from SteelOrbis)
Evraz UGOK a subsidiary of Russian mining and steel producing company Evraz Group increased its iron ore concentrate production by 6.4%YoY to 809,000 tonnes. Its output of agglomerate in the given period increased by 3%YoY to 137,000 tonnes.
In the January to September period of the current year, Evraz UGOK saw a 14.2%YoY growth in its iron ore concentrate production to 7.572 million tonnes and an 11%YoY increase in its agglomerate production to 1.376 million tonnes.
(Sourced from SteelOrbis)
Thursday, October 6, 2011
NLMK acquires Indian electrical steel service center
Thu, 06 October 2011
Russian steelmaker NLMK has announced that it has acquired an India-based electrical steel service center National Laminations for a total consideration of US$8 million. The acquisition will improve NLMK's position in the Indian market as one of the leading suppliers of grain-oriented electrical steel, controlling production from crude steel production to delivery to the final customer.
National Laminations is a grain-oriented steel processing and distribution company with processing and warehousing capacities of 16,000 mt and 15,000 mt per year, respectively. The company supplies processed materials to a wide range of customers, including local and international transformer producers.
Tags: flats , India , Russia , CIS , Indian Subcon , NLMK , M&A , steelmaking , South Asia
(sourced steelorbis)
Russian steelmaker NLMK has announced that it has acquired an India-based electrical steel service center National Laminations for a total consideration of US$8 million. The acquisition will improve NLMK's position in the Indian market as one of the leading suppliers of grain-oriented electrical steel, controlling production from crude steel production to delivery to the final customer.
National Laminations is a grain-oriented steel processing and distribution company with processing and warehousing capacities of 16,000 mt and 15,000 mt per year, respectively. The company supplies processed materials to a wide range of customers, including local and international transformer producers.
Tags: flats , India , Russia , CIS , Indian Subcon , NLMK , M&A , steelmaking , South Asia
(sourced steelorbis)
Wednesday, October 5, 2011
Russian steelmaker NLMK to issue 50 bln rbl bonds
Wed Oct5, 2011
MOSCOW(Reuters) - The board of Russian steelmaker NLMK has approved a 50-billion rouble ($1,53 billion) 10-year bond issue, the steelmaker said in a statement on Tuesday.
The lead managers are Gazprombank, ZENIT Bank and Rosbank, it said.
"This new instrument will help NLMK to attract long-term capital if required to finance projects such as its technical upgrade program, as well as for other corporate purposes." ($1 = 32.604 Russian Roubles)
MOSCOW(Reuters) - The board of Russian steelmaker NLMK has approved a 50-billion rouble ($1,53 billion) 10-year bond issue, the steelmaker said in a statement on Tuesday.
The lead managers are Gazprombank, ZENIT Bank and Rosbank, it said.
"This new instrument will help NLMK to attract long-term capital if required to finance projects such as its technical upgrade program, as well as for other corporate purposes." ($1 = 32.604 Russian Roubles)
Wednesday, August 24, 2011
Severstal maintains steel shipments at relatively high levels in August
Wednesday, 24 Aug 2011
It is reported that in August this year, Russian steelmaker Severstal plans to ship around 66,000 tonnes to 68,000 tonnes of commercial galvanized steel against 79,000 tonnes in July including 60,000 tonnes to 62,000 tonnes to the domestic market.
In the given month, Severstal will ship around 18,000 tonnes to 20,000 tonnes of rolled steel with polymer coating against 23,000 tonnes in July, including 18,000 tonnes to 19,000 tonnes to the domestic market.
In January to July period of the current year, Severstal produced around 410,000 tonnes of commercial galvanized steel up by 43%YoY and 131,000 tonnes of rolled steel with polymer coating up by 11% compared to January to July 2010.
(sourced steelorbis)
It is reported that in August this year, Russian steelmaker Severstal plans to ship around 66,000 tonnes to 68,000 tonnes of commercial galvanized steel against 79,000 tonnes in July including 60,000 tonnes to 62,000 tonnes to the domestic market.
In the given month, Severstal will ship around 18,000 tonnes to 20,000 tonnes of rolled steel with polymer coating against 23,000 tonnes in July, including 18,000 tonnes to 19,000 tonnes to the domestic market.
In January to July period of the current year, Severstal produced around 410,000 tonnes of commercial galvanized steel up by 43%YoY and 131,000 tonnes of rolled steel with polymer coating up by 11% compared to January to July 2010.
(sourced steelorbis)
Thursday, August 4, 2011
Russia supplies 1.268 million mt of steel products to EU countries in January-July
Aug04,2011
In January-July this year, Russian metallurgical companies supplied European Union (EU) countries with around 1.268 million mt of steel products, using 38.9 percent of the quotas established by the European Commission for the year.
For 2011, the EU has extended its agreement with Russia for the trade of certain steel products and has increased the volume quota for Russian steelmakers by 2.5 percent compared to 2010
In January-July this year, Russian metallurgical companies supplied European Union (EU) countries with around 1.268 million mt of steel products, using 38.9 percent of the quotas established by the European Commission for the year.
For 2011, the EU has extended its agreement with Russia for the trade of certain steel products and has increased the volume quota for Russian steelmakers by 2.5 percent compared to 2010
Saturday, March 5, 2011
Guryevsk Metallurgical Works crude steel output rises 67pct YoY
Saturday, 05 Mar 2011
It is reported that Guryevsk Metallurgical Works a subsidiary of Russian steel producer ESTAR Holding, in the January to February period of the current year saw its crude steel output increase by 66.6%YoY producing 32,200 tonnes.
During the period in question, GMZ increased its commercial rolled steel product output by 15.6% to 39,600 tonnes and upped its steel grinding balls production by 17.5%YoY to 17,000 tonnes.
(sourced:steelorbis)
It is reported that Guryevsk Metallurgical Works a subsidiary of Russian steel producer ESTAR Holding, in the January to February period of the current year saw its crude steel output increase by 66.6%YoY producing 32,200 tonnes.
During the period in question, GMZ increased its commercial rolled steel product output by 15.6% to 39,600 tonnes and upped its steel grinding balls production by 17.5%YoY to 17,000 tonnes.
(sourced:steelorbis)
Friday, March 4, 2011
Russia’s Ashinskiy sees 2.8 percent drop in Jan-Feb steel output
Friday, Mar04, 2011
According to its data issued for the first two months of the current year, Russian steel producer Ashinskiy Metallurgical Works (Ashinskiy) registered a 2.8 percent drop year on year in its steel output to 110,000 mt, including 108,600 mt of slabs - down 0.8 percent year on year.
In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.
In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.
In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.
In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.
Thursday, March 3, 2011
Severstal positive on 2011 after Q4 loss
Thu Mar 3, 2011 9:24am GMT
* Posts Q4 loss of $352 mln vs forecast $288 mln profit
* Says Russia and CIS steel demand to grow 8 pct in 2011
* Shares up 1.48 percent
(Adds CEO comment, detail, share price)
By John Bowker and Alfred Kueppers
MOSCOW, March 3 (Reuters) - Russia's biggest steelmaker Severstal (CHMF.MM: Quote) said growing demand in both home and overseas markets would boost sales and production in 2011 after it posted a fourth quarter 2010 loss of $352 million.
The company said on Thursday that demand in Russia and the CIS would rise 8 percent in the current year, supported by investment in new infrastructure, pipelines and real estate.
It added that global prices were also likely to be strong in the first half of the year as growth in the world economy continues to fuel industrial demand, before easing in the six-month period to end December.
"Accelerating economic growth in our key markets in 2011 should produce another strong year for Severstal as demand for steel improves and raw material prices rise," Chief Executive Alexei Mordashov said in a statement.
Steelmakers in Russia, the world's third-largest producer, are benefiting from their position as leading low-cost producers after a difficult 2009 when prices and demand collapsed.
Severstal shares, which have climbed around 55 percent in the past 12 months, were trading 1.48 percent higher at 0920 GMT, compared with a 1 percent higher broader market.
MISSED FORECASTS
Severstal's fourth quarter 2010 loss was wider than the same period the previous year and some way off analysts' forecasts for a $288 million profit.
The company said in a statement the Q4 loss figure included losses relating to closed operations in North America not included in the 2009 results.
Severstal's North American arm has been the company's problem child in recent months, with the company choosing to offload assets and focus on a smaller presence.
The company on Wednesday announced the sale of three mills in the U.S. to New-York based investment firm Renco Group in a deal valued at $1.2 billion. [ID:nLDE7211HL]
Severstal last month also postponed plans for a $1.5 billion London IPO of its fast growing Nord Gold mining unit citing market conditions, and said in the statement it would now concentrate on developing the business. "We are confident that given its strong fundamentals Nord Gold will meet our predicted growth targets," Severstal said.
Overall company revenue in the fourth quarter totaled $3.73 billion, down from $3.9 billion a year ago and below a $3.98 billion poll forecast.
Severstal's full year 2010 loss came in at $577 million, down from a restated $1.04 billion loss in the crisis-hit 2009. 2010 revenue was $13.6 billion, up 41.5 percent on 2009. (Writing by John Bowker; Editing by Hans Peters,sourced:Thomson Reuters)
Wednesday, March 2, 2011
MMK invests over $73 million in environmental safety improvement in 2010
Wednesday, 02 March 2011
The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that in 2010 it implemented 35 special projects for environmental safety improvements for a total of over Ruble 2.2 billion (over $73 million).
Accordingly, most of the projects were aimed at developing increasingly safe water and gas purification systems and waste disposal facilities. MMK said it would work on 10 additional projects of the kind in 2011.
As a result, in 2010 MMK was able to reduce gross atmospheric emissions by 8,200 tons while its crude steel production increased by 18.7 percent and its commercial steel product output rose by 17 percent.
The share of recycling water consumption at MMK stood at 97.3 percent of the total water intake of the company. The volume of reusable waste for sintering mixture grew by 6.4 percent to reach 2.182 million mt. The volume of recycled slag increased to 9.152 million mt (up 32.75 percent from 2009).
Accordingly, most of the projects were aimed at developing increasingly safe water and gas purification systems and waste disposal facilities. MMK said it would work on 10 additional projects of the kind in 2011.
As a result, in 2010 MMK was able to reduce gross atmospheric emissions by 8,200 tons while its crude steel production increased by 18.7 percent and its commercial steel product output rose by 17 percent.
The share of recycling water consumption at MMK stood at 97.3 percent of the total water intake of the company. The volume of reusable waste for sintering mixture grew by 6.4 percent to reach 2.182 million mt. The volume of recycled slag increased to 9.152 million mt (up 32.75 percent from 2009).
Tags: Russia , CIS , MMK , investments , steelmaking
Tuesday, March 1, 2011
Russia abandons iron ore and steel export duty plans
Tuesday, 01 Mar 2011
Interfax citing Mr Andrei Slepnyov deputy economic development minister as saying that Russia has abandoned plans to impose an export duty on iron ore and rolled steel products.
According to the deputy minister, automakers and steel producers have reached agreement on delivery and prices and therefore it is no longer necessary to impose an export duty.
(sourced from Interfax)According to the deputy minister, automakers and steel producers have reached agreement on delivery and prices and therefore it is no longer necessary to impose an export duty.
Tags : agreement, raw material prices, steel mills,
Tuesday, February 22, 2011
Gubakha Coke commissions second coke battery to double output
Monday, 21 February 2011
Tags: coking coal , raw mat , Russia , CIS , production , investments , steelmaking , Met Coke
(sourced:steelorbis)
Russia's Kemerovo city-based company Stroyservis has announced that its Perm region-based coke producing subsidiary Gubakha Coke has commissioned its second coke battery, i.e., coke battery No.1-BIS, which will allow it to double its coke output from 650,000 mt to 1.3 million mt per year.
Gubakha Coke's coke battery No.1-Bis had been in condition of ‘hot idle'. The decision on its commissioning was taken by Stroyservis after the plant was acquired from the Russian pipe producing company OMK in May 2010. Previously, Gubakha Coke had just been operating its coke battery No.2-BIS with an annual capacity of 650,000 mt of coke. For the implementation of this project Stroyservis invested more than Ruble 100 million (about $3.4 million) in 2010.
In 2011, Gubakha Coke produced 514,000 mt of coke, registering a 68 percent increase over 2009, while its shipments were equal to its output level. In 2011, Gubakha Coke plans to increase its coke production to more than one million mt, which is also expected to be exported to steel producing companies in Ukraine and Belarus.
As SteelOrbis previously reported, Stroyservis, which is specialized in mining and beneficiation of coal, mining machinery and metal trading, possesses five coal mines in the Kemerovo region, which supplies about 73 percent of coking coal to Gubakha Coke.
Gubakha Coke's coke battery No.1-Bis had been in condition of ‘hot idle'. The decision on its commissioning was taken by Stroyservis after the plant was acquired from the Russian pipe producing company OMK in May 2010. Previously, Gubakha Coke had just been operating its coke battery No.2-BIS with an annual capacity of 650,000 mt of coke. For the implementation of this project Stroyservis invested more than Ruble 100 million (about $3.4 million) in 2010.
In 2011, Gubakha Coke produced 514,000 mt of coke, registering a 68 percent increase over 2009, while its shipments were equal to its output level. In 2011, Gubakha Coke plans to increase its coke production to more than one million mt, which is also expected to be exported to steel producing companies in Ukraine and Belarus.
As SteelOrbis previously reported, Stroyservis, which is specialized in mining and beneficiation of coal, mining machinery and metal trading, possesses five coal mines in the Kemerovo region, which supplies about 73 percent of coking coal to Gubakha Coke.
Tags: coking coal , raw mat , Russia , CIS , production , investments , steelmaking , Met Coke
(sourced:steelorbis)
Sunday, February 6, 2011
Russian steel plants need investments - Siemens VAI
Sunday, 06 Feb 2011
According to Mr Werner Auer, CEO of Austria based plant maker Siemens VAI, Russian steelmakers have made up for the collapse of production in 2009 caused by the worldwide economic crisis.
Mr Auer said "2010 saw an increase in steel production again almost to the level of the record breaking year of 2008 and companies have started again to increase their investment in the expansion and enhancement of their production.”
He went on to say that he has observed an increased demand for new technologies to be used primarily in new plants or in the context of modernization.
Mr Andreas Lemp Siemens VAI manager responsible for systems business in Moscow said "Contrary to many other steel nations, Russia has its own raw materials and energy. This puts Russia in a good position to become a cost leader in production, and also among international competition."
Mr Auer said the expansion of production capacities in Russia is in line with transformation efforts and technological modernization. He said that "This is because Russian steel producers will better utilize their raw material, save on energy costs and fulfill stricter environmental regulations. Russia will also increasingly produce more sophisticated products.”
Mr Auer stated that therefore, existing steel plants need to be modernized and enhanced.(sourced:steelorbis.com)
According to Mr Werner Auer, CEO of Austria based plant maker Siemens VAI, Russian steelmakers have made up for the collapse of production in 2009 caused by the worldwide economic crisis.
Mr Auer said "2010 saw an increase in steel production again almost to the level of the record breaking year of 2008 and companies have started again to increase their investment in the expansion and enhancement of their production.”
He went on to say that he has observed an increased demand for new technologies to be used primarily in new plants or in the context of modernization.
Mr Andreas Lemp Siemens VAI manager responsible for systems business in Moscow said "Contrary to many other steel nations, Russia has its own raw materials and energy. This puts Russia in a good position to become a cost leader in production, and also among international competition."
Mr Auer said the expansion of production capacities in Russia is in line with transformation efforts and technological modernization. He said that "This is because Russian steel producers will better utilize their raw material, save on energy costs and fulfill stricter environmental regulations. Russia will also increasingly produce more sophisticated products.”
Mr Auer stated that therefore, existing steel plants need to be modernized and enhanced.(sourced:steelorbis.com)
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