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5 May 2017

Severstal Distribution increases sales volumes by 13%

Severstal Distribution increased its sales of metal products for the first quarter by more than 13% year on year, to 395,000 tonnes. The Company recorded revenues of USD 225 million for January-March 2017, a 71% increase compared to the corresponding period of 2016, driven by as growth in rolled metal product prices.

Andrey Alexeyev, Head of the Distribution Network of Severstal’s Russian Steel division, said: "The steel products market remains volatile. Analysts forecast 1.8% growth in metal consumption in Russia this year, and growth of 0.7% in the Nordic countries. Bursts of demand for metal products in these markets are actually related to price fluctuations. Despite the changes in demand, we are confident that our businesses are well positioned, and our sales are outstripping the growth rates of the market. This is primarily a result of our focus on constantly enhancing our customer service, as well as our supply tender success rate for metal products."

In the first quarter of 2017, Severstal Distribution delivered 197 000 tons, or half of the Company’s sales volume for this period, to Russia. 171 000 tonnes were delivered to the Nordic countries (Baltic countries, Finland, Germany, Poland), or 43% of the distribution network’s total sales. Another 7%, or 26,000 tonnes, were sold by Severstal Distribution to Ukraine and Belarus.

Constantly improving customer service is a strategic priority of Severstal Distribution. The distribution network can accommodate complex orders and deliveries, including metal processing, multimodal transportation, metal storage and other services. For customers who prefer to purchase metal from the warehouse, a range of products is permanently available at Severstal Distribution’s warehouses. In 2017 the Company launched sales via its online store, and rolled metal is currently available from Severstal Distribution’s sites in Moscow and Cherepovets.