The second-quarter loss compared with a $1.5 billion profit a year earlier but was far less than the $654 million loss that Severstal incurred in the January-March period.
Sales in April-June were $2.8 billion, a marginal improvement against the previous quarter.
In the second quarter, Severstal recorded a loss before interest, taxation, depreciation and amortisation of $5 million -- better than $156 million a quarter earlier.
The London-listed steelmaker said in a statement that it does not propose a dividend payment for the quarter or expect one for the full year.
Severstal's results reflect how hard the global steelmarket has been hit by the global downturn. Russia's largest steelmakers have suffered from a slump in construction and car production in the wake of the financial crisis. The company's main shareholder and chief executive, Alexei Mordashov, described the second quarter as a “turning point for the steel market” as prices hit their lowest levels in May.
Severstal said in the statement that production volumes and prices started to improve in early July “indicating tentative improvements in market conditions.”
