PAOSeverstal's hot metal output in the second quarter decreased 6%quarter over quarter to 2.2 million tonnes, while crude steel productiondeclined 3% to 2.8 million tonnes.

Production was mainly impacted by short-term maintenance ofblast furnace No. 5 at Cherepovets Steel Mill during the quarter, and theshort-term maintenance of continuous casters No. 3 and the billet caster,according to the July 12 statement.

Despite a decline in crude steel output, consolidated salesof steel products were up 14% quarter over quarter to 2.8 million tonnes in thesecond quarter, on the back of higher domestic steel consumption.

Production in the first half of the year dropped 1% for bothcrude steel and hot metal to 5.8 million tonnes and 4.6 million tonnes,respectively.