NEW YORK OAO
Severstals North American operations expect to see
continued strength in U.S. steel demand during the third
quarter, with "moderate upward pricing movements," the company
However, "while the
short-term outlook for the steel industry is showing signs of
improvement, over the medium- to long-term we expect the market
will remain challenging," the Moscow-based steelmaker said.
international unitcomprising its Dearborn, Mich., and
Columbus, Miss., operations, along with its Lucchini Piombino
operations in Italyposted revenue of $953.4 million for
the three months ended June 30, down 10.3 percent from $1.06
billion in the same period last year but up 2.5 percent from
$929.8 million in the first three months of this year.
sales volumes grew by 5.2 percent sequentially to 1.2 million
tonnes from 1.1 million tonnes, but the increase was offset by
lower average selling prices, which fell 2.6 percent to $787
per tonne from $808 in the first quarter.
The major contributors
to demand growth in the second quarter were the automotive and
construction industries, the company said.
internationals segment posted earnings before interest,
taxes, depreciation and amortization (Ebitda) of $44 million,
down 42.9 percent from $77 million a year earlier and 12
percent below $50 million in the first quarter of this
The company said its
mill utilization rate was near 100 percent in the second
quarter compared with an average of 78 percent for the U.S.