Severstal confirms 2024 production forecast at 11 mln tonnes - CEO

MOSCOW. Oct 29 (Interfax) - Severstal has confirmed its production forecast for 2024 at 11 million tonnes.

"We're aiming for a similar level of production [of 11 million tonnes]," Severstal CEO Alexander Shevelev told Interfax.

Severstal produced 11.3 million tonnes last year, up 5% on its 2022 figure.

Previously, the company also set a target of 11 million tonnes for 2024.

It is no longer economically advantageous to produce slabs using scrap metal, Shevelev said.

"In the current situation, producing steel using scrap metal is not economically justified. I am referring to expensive scrap metal and a low price for the manufactured products. We used scrap metal to produce slabs and sold them for export. Given export prices, export duties and high transaction costs this year, sales of semi-finished products for export have fallen significantly," he said.

Severstal's investments in 2025 will be at least no lower than for 2024, he said.

As reported in June, the target for capital expenditures in 2024 is 119 billion rubles, and is forecast to be 170 billion rubles in 2025.

"We don't need to turn down any projects or cut back our declared investment program due to the rise in the key rate, thanks to our strong financial position - the absence of a debt burden and a net cash position. At the same time, our projects are tailored to demand from customers in specific niches. If we see a sustained decline in market demand, we can adjust our capex accordingly," Shevelev said.

Severstal increased production 7% in Q3 quarter-on-quarter to 2.47 million tonnes.