The Russian ferrous metallurgy demonstrated profit in Q2

The profits of the Russian metallurgic companies is mostly connected with ruble devaluation, and the economic situation at both the internal and the external markets remains unfavourable.

The Russian ferrous metallurgy demonstrated profit in Q2 despite the growth in prices and low demand for steel. The positive result was promoted by the measures aimed at the reduction in expenses and cheaper prices for raw materials and low ruble rate.

Most of the ferrous metallurgic companies gained a profit in H1, with exception for Mechel that will present its accounting in October and Severstal that made a loss. The latter's negative result could be positive because Severstal gained revenue of $426 million but the accounting tells about loss summing up a $1 billion of loss from the sales of the American assets and $121 million of loss from fluctuations in currency exchange rates. Evraz also gained profit, rather small, being $1 million but it’s the first positive result since 2011. MMK hadn’t gained profit for over 1 year, and in Q2 it earned $159 million of profit.