Severstal's Net Profit Fell nearly Six Times Amid a Pandemic
“The first three months of 2020 were very difficult for world metallurgy. In February, the outbreak of the COVID-19 epidemic occurred in China, the world's largest steel market”, said Alexander Shevelev, general director of Severstal Management (his words are quoted in the company's message). Tough quarantine measures led to the shutdown of car factories and construction projects, reducing the demand for metal products, he added. Subsequently, the restrictions associated with the spread of coronavirus entered into force in Europe and in Russia.
Expectations of a slowdown in the economy and a decrease in steel demand led to negative dynamics in rolled metal prices starting in March 2020, however, even the current price level is much higher than the cost, the head of Severstal emphasized.