Severstal has revised its 2026 budget downward in response to deteriorating global steel market conditions.
Cost-cutting measures
The company announced:
- Repair budget reduced by 14%
- Capital expenditure cut by 24%
- Payroll costs lowered by 5%, mainly via hiring freeze
Market pressure
CEO Alexander Shevelev stated that market conditions have become increasingly challenging, forcing further efficiency measures despite previous cost optimization efforts.
Strategic continuity
Despite reductions, Severstal will continue key investments, including:
- Iron ore pellet production projects
- Long-term competitiveness initiatives
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