By Alex MacDonald
LONDON--Russia's largest steelmaker Severstal OAO (CHMF.RS)
reported Friday higher crude steel output in the first half of the
year, as higher production from the U.S. more than offset a decline
in output from its Russian operations.
Severstal produced 7.79 million metric tons in the first six
months of the year, up 4% from 7.52 million tons in the same period
a year ago. Second quarter crude steel production, however, dropped
5% to 3.8 million tons from the first quarter.
Severstal's North American crude steel output, largely emanating
from the U.S., rose 33% to 2.44 million tons in the first half of
the year, more than offsetting a 6% decline in Russian crude steel
output, to 5.36 million tons. On a quarterly basis, Severstal
produced less steel in both Russia and the U.S. in the second
quarter.
Severstal's performance stands in contrast to steel titan
ArcelorMittal's (MT), which reported this week a 5% drop on-year in
steel output during the first half as it cut back production due to
weak demand, particularly in Europe. The only relative bright spot
for the world's largest steelmaker was North America where it's
currently operating at effectively full capacity.
Severstal, the 23rd largest steel producer globally, also said
that iron ore output was up but coking coal concentrate output down
on year in the first half. Both iron ore and coking coal are key
ingredients used in steelmaking.
First half iron ore pellet output rose 12% on year to 5.1
million tons and rose 1% on quarter to 2.56 million tons in the
second quarter. Coking coal concentrate dropped 3% on year to 3.6
million tons in the first half despite a 1% on-quarter rise to 1.82
million tons in the second quarter.
Write to Alex MacDonald at alex.macdonald@dowjones.com
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