Insight: Severstal sold Balakovo at opportune moment

摘要

Russian mining and steel company Severstal may achieve a still higher EBITDA marginfollowing the disposal of its Balakovo steel and rebar mill near Saratov, in the Volgadistrict.The asset was weighing on the company’s profitability for years, several analysts told S&PGlobal Platts Thursday, the day the company reported the sale of Balakovo has finalized.They noted the mill found a buyer -- south Russian bar, rod and billet maker AbinskElectrometallurgical Plant -- amidst the best year for rebar sales in Russia since 2014 butthe proceeds came to just a third of the mill’s initial cost.