MOSCOW [Russia]: Sevesrstal, one of Russia's largest Steelmakers, reported that its fourth-quarter crude Steel output rose by 3% from the previous quarter to 2.7 million tonnes. Meanwhile, sales of Steel products dropped 11% in the same period to 2.8 million tonnes.

In 2022, Severstal's crude Steel production totalled 10.7 million tonnes, a decrease of 8% compared to the previous year. However, hot metal output remained unchanged.

Despite the Western sanctions, the company reported only a 2% decrease in Steel sales to 10.9 million tonnes due to strong demand domestically and deliveries to ex-Soviet countries. Alexander Shevelev, the CEO of Severstal, made this announcement.

In the face of Western sanctions, Russian Steel exports were significantly impacted in 2022 due to Moscow's military operations in Ukraine. Last March, the European Union imposed sanctions on Sevestal owner Alexei Mordashov, with further sanctions from the United States coming in June for Mordashov, his family and businesses. These heavy restrictions had a major impact on Severstal's ability to trade internationally.

Severstal has announced the cessation of exports to Europe, and instead redirecting production to alternate markets. According to Shevelev, the drop in domestic demand for their products is expected to be 1% in 2023 following a 3% decrease in 2022.

“Sanctions pressure on the Russian economy remains. Therefore, in 2023 we expect a slight decline in Steel demand in Russia, in the range of 1%. The situation could improve if automakers and machine builders raise production,” he stated.