Russian steelmaker Severstal expects Q2 (April-June) to register the most severe impact of COVID-19 pandemic. Recovery according to the steelmaker, could begin in the second half, state media reports.
The reports cite Chief Financial Officer Alexey Kulichenko, who informs domestic steel demand in Russia is 17pc lower than the prior-year period. This, even as business has started to improve in June. According to him, global steel capacity has declined by 74mn mt amid COVID-19 outbreak and the resulting impact on economies.
The CFO estimates deliveries in the second quarter to fall by only a few per cent but revenue to be hit by softened steel prices. In the quarter, the company expects to divert 48-50pc of its output for exports compared to 45pc in Q1. Severstal’s sales in Europe are estimated to remain comparable to its historic average of 2-2.5mn mt in 2020.