Severstal eyes North American market for LDP exports

Severstal looks abroad

Lower consumption and a review of investment plans by major end-users within Russia itself have prompted the move, the source noted.
In addition, many pipeline construction projects within Russia have also ended, a market watcher also said.
“The domestic market has been overloaded for a while,” that source added.
Severstal also announced in November that it had for the first time dispatched 235,000 tonnes of LDP – with a 800.1 mm diameter and a wall thickness of 19.05 mm – to the Port of Houston as a one-time shipment.
The official did not say who the end-user was or the planned application, however, citing confidentiality agreements.
Only a small percentage of Severstal’s LDP production has gone to the export market, mainly to Europe, South Asia as well as to Middle East and North Africa, the official told MetalMiner.

ITZ is in St. Petersburg. The mill can produce up to 600,000 mty of LDP in 610-1,420 mm diameters and in thicknesses of 10-32mm for the gas and oil sectors, information on the company’s website stated.
Furthermore, feedstock for the LDPs comes from Severstal’s main integrated works at Cherepovets. The works is approximately 500 km north of Moscow, where its Mill 5000 rolls wide sheet.

Sales volumes

Reduced stock levels saw ITZ’s sales volumes in Q3 increase to 85,000 tonnes. The figure jumped from 25,000 tonnes in the prior quarter, Severstal said in its nine-month report.
“In response to a contraction in domestic demand, the group reallocated a portion of its sales volumes to export destinations in Q3 2020,” Severstal reported.
LDP sales for the first three quarters of 2020 were off 57% year over year to 129,000 tonnes,. Meanwhile, sales totaled 303,000 tonnes over the same period in 2019, the group stated.
Average sales prices for Severstal’s LDP were up 6% quarter over quarter in Q3. The average reached $825/mt in Q3, up from $778/mt, the group said.
Furthermore, the first nine months of 2020 saw average sales prices slip 19% year on year, however, to $811 from $996, Severstal figures indicated.
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