EVRAZ plc (LSE: EVR) today releases its operational results for the second quarter of 2015.
Q2 2015 vs Q1 2015 OPERATIONAL HIGHLIGHTS:
· Consolidated crude steel output reached 3.4 million tonnes in Q2 2015, down 14% QoQ as a result of deconsolidation of EVRAZ Highveld Steel and Vanadium (EHSV) as well as repair and maintenance works at Russian steel mills.
· Production of steel products, net of re-rolled volumes, went down by 14% QoQ as a result of the above-mentioned two factors as well as softer demand for tubular goods in North America.
· The share of finished steel products within consolidated volumes grew to 65% in Q2 2015 from 61% in Q1 2015 due to lower production of semi-finished products in Russia resulting from shutdowns of billet casters for maintenance and a better demand for construction and railway products in Russia.
· Production volumes of railway products rose driven by increased orders by Russian Railways and other CIS customers and continued demand from Class 1 railroads in the USA.
· Production of tubular goods in North America declined as lower energy exploration activity, de-stocking at distributors, and usual spring break-up negatively affected OCTG demand.
· Consolidated raw coking coal output and production of coking coal concentrate declined by 30% and 8% respectively QoQ due to lower output of both the Raspadskaya coal company and Yuzhkuzbassugol as a result of scheduled longwall moves and adjustment of production plans in response to weak market conditions.