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In January-March, Severstal reduced the volume to tax profit by 53.2%. The indicator is stated in annual equivalent. If we perform a comparative analysis with the fourth quarter of 2015, the decline was 31.9%. The reason for the decline in performance was the fall in the cost of production. It is also necessary to take into account the decline in sales volumes as a result of low domestic demand. The result of activity before mandatory payments in the first quarter reached 273 million USD. This indicator is slightly lower than the analysts forecasted result of 279 million USD. Dynamics of EBITDA for the quarter showed a sharp decline in the average cost of sales. At the same time, the ruble remains weak. The cost of raw materials shows a decline at the dollar rate. EBITDA margin in the first quarter reached 24.9%. In 2015, the indications of the same period were 38.1%. In the fourth quarter of 2015, EBITDA margin reached 28.7%.

The revenue received by Severstal also decreased. Relative to the IV quarter, the drop was 21.4%. Relative to a similar result last year, the decline was 28.3%. The volume of revenue in the I quarter of 2016 amounted to 1.097 billion USD. According to previous predictions of analysts, it was supposed to reach 1.095 billion USD. The decrease in revenue relative to the IV quarter was due to the continuing decline in prices. The increase in the cost of production began to be celebrated only in March 2016. This is mentioned in the reporting of Severstal. The drop in incomes relative to the previous year is observed against the background of a decline in the value of goods. The volume of sales of steel products and coal decreased to a considerable extent.

In the first quarter, the decline was shown by net profit of Severstal. It amounted to 19.6% on an annualized basis, reaching the level of 270 million USD. In the IV quarter, the company demonstrated a loss of $ 114 million. The profit reached the level of 99 million USD. At the same time, it did not include write-offs, income from the difference in rates. This figure is lower than the forecasted profit, which was supposed to reach 113.14 million USD.

The press release of the company indicates the negative impact of certain factors on the level of steel prices. There are dubious prospects for the development of China's economy. Also, there is no necessary increase in consumption of steel products on a global scale. In March, there was a change in the situation for the better. However, the risks to the cost of steel remain in the medium term.