Severstal recovers from steel slump in previous quarter

Suzie Neuwirth
RUSSIA’S biggest steelmaker Severstal yesterday posted a seven per cent increase in its core commodity output compared to the last quarter of 2012.

The Moscow- and London-listed company reported that total output of crude steel had risen to 3,835,016 tonnes in the first quarter of 2013, from 3,584,214 tonnes in the previous quarter.

However, crude steel production dropped four per cent year-on-year, from 3,989,725 tonnes in the first quarter of 2012.

“The results are in line with expectations and show that the company is recovering from a trough last year,” Igor Lebedinets, analyst at VTB Capital, told City A.M. “There are no major surprises there and I don’t think it will impact the share price significantly.”