EVRAZ Q1 2019 trading update
EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today released its trading update for the first quarter of 2019.
Q1 2019 vs Q4 2018 HIGHLIGHTS
- In Q1 2019, EVRAZ’ consolidated crude steel output climbed by 12.4% QoQ to 3.5 million tonnes, primarily as a result of higher pig iron production following the completion of capital repairs at EVRAZ ZSMK’s blast furnace no. 3 at the end of Q4 2018.
- Total steel product sales rose by 8.4% QoQ, driven by higher crude steel production. Sales of semi-finished products surged by 29.0%, primarily due to increased pig iron and crude steel output. This was partly offset by a 2.7% reduction in sales of finished products, which was mostly attributable to lower sales of construction products in Russia and tubular and railway products in North America.
- Production of raw coking coal remained flat QoQ. In Q1 2019, external sales volumes of coking coal products declined by 4.1% as coking coal concentrate sales subsided from the elevated levels during the longwall repositioning at Yuzhkuzbassugol’s Uskovskaya mine in Q4 2018.
- Sales of vanadium products fell by 5.3% QoQ, mainly due to a sharp decline of demand from the automotive industry and high stock levels at steel makers, accumulated during a period of sharp FeV price increase.