Severstal prepares to cut back steel production by up to 30%

By Catherine Belton in Moscow and Rebecca Bream in London Severstal, Russia's biggest steelmaker, said yesterday it was cutting back steel production by as much as 25 per cent at its biggest plant in Russia, and by 30 per cent at its plants in the US, because of slowing demand. The moves come as other steelmakers worldwide consider production cuts in response to slumping demand, with the credit crisis hitting customers in industries such as construction and car making. ArcelorMittal, the world's largest steelmaker, last month signalled its readiness to cut output by up to 15 per cent as prices fall, and expectations are growing that several big Chinese steelmakers could cut production by 20 per cent. Severstal said it would slash crude steel production this month by 25 per cent at its biggest Russian plant, Cherepovets, and... [read full story]