The company witnessed an 8pc hike in steel sales at 1.3mn mt in the first half of 2020 (H1) compared to the same period last year. In H1, Severstal Distribution’s sales to Europe was 740,000 mt, which is 13pc higher than the previous year, while sales in Russia rose to 580,000 mt, up 4pc.
In the June quarter, sales declined due to a disruption in the distribution network due to restrictions put in place to control the COVID-19 pandemic. The company processed and shipped products in Russia and Europe in H1 taking precautionary measures to ensure that the distribution network is maintained. This aided the recovery of sales in the May-June period.
Severstal Distribution created a large distribution centre in Vologda for prompt supplies of rolled metals to regional warehouses, as well as for the development of processing in Cherepovets SMC. Severstal also launched a development program for small and medium-sized businesses and offered spot purchases from the warehouse. The company has clients in the Baltic states, Finland, Sweden, Germany, Belgium, the Netherlands, Poland, Czech Republic and Slovakia.