[Ferro-Alloys.com] Reuters reported tat Russian steel producer Severstal expects domestic demand to fall by 5-7% in 2020 compared to 2019 as a result of the coronavirus outbreak, but says increased exports have allowed it to keep producing to capacity. Severstal Chief Financial Officer Mr Alexey Kulichenko told Reuters“The second quarter will be the most difficult for us, as it will be for the whole market. While second-quarter deliveries may only fall by a few percent compared to the previous quarter, lower prices would shrink revenues. Severstal expects the share of its output directed to export to reach 48%-50% in the second quarter, versus 45% in the first quarter as some producers abroad reduced capacity.”
He also said the company’s biggest customers were in the construction sector, which has been less hit by the pandemic than the auto industry.
Mr Kulichenko estimated global steel capacity has fallen by 74 million tonnes as the coronavirus outbreak led to a collapse in economic activity.
Source: steel guru
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