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EVRAZ Q1 2020 trading update

EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today released its trading update for the first quarter of 2020.

Q1 2020 vs Q4 2019 HIGHLIGHTS

  • In Q1 2020, EVRAZ’ consolidated crude steel output rose by 3.2% QoQ, mainly due to completion of capital repairs at EVRAZ NTMK’s converter no. 2, which took place in Q4 2019.
  • Total steel product sales fell by 10.4% QoQ. Sales of semi-finished products dropped by 15.3% QoQ, due to higher than usual sales volumes from Russia at Q4 2019 on the back of good export market conditions.
  • Sales of finished products went down by 6.1%, due to seasonal decline in demand in the first quarter of the year in Russia as well as due to the sale of Palini e Bertoli in 2019. In addition, sales of finished products were impacted by lower tubular product sales volumes due to a lack of line pipe orders and deterioration of oil country tubular goods (OCTG) market demand in North America.
  • Total raw coking coal production decreased by 4.8% QoQ, driven by weaker demand for coal on global markets as well as lower production at Yuzhkuzbassugol’s mines following the longwall move at the Uskovskaya mine. Production at Mezhegeyugol has been suspended until favourable market conditions are restored.
  • External sales volumes of coking coal products surged by 30.4% QoQ due to successfully completed task to maximise product shipments as well as higher sales volumes to China.
  • External sales of iron ore products jumped by 30.0% QoQ as most of the Q4 2019 sales volumes were delivered in Q1 2020 due to logistical limitations on shipments to China.
  • Sales of vanadium products fell by 9.9% QoQ, mainly due to weaker demand for FeV in Europe as a result of reduced steel utilisation rates following lower demand in the automotive industry. Lower FeV sales to Europe was partially compensated by increased FeV and oxide sales to Asia and Russia.
Product, kt Q1 2020 Q4 2019 Q1 2020/ Q4 2019, change Q1 2019 Q1 2020/ Q1 2019, change
Total crude steel production 3,559 3,449 3.2% 3,488 2.0%
Russia 3,121 3,008 3.8% 2,986 4.5%
North America 438 441 -0.7% 502 -12.7%
Total raw coking coal mined 5,692 5,981 -4.8% 6,844 -16.8%
Total coking coal concentrate
production
3,747 3,537 5.9% 3,684 1.7%
Iron ore products production 3,595 3,277 9.7% 3,636 -1.1%
Total sales of steel products 3,227 3,603 -10.4% 3,135 2.9%
Semi-finished products 1,437 1,697 -15.3% 1,335 7.6%
Finished products 1,790 1,906 -6.1% 1,800 -0.6%
Total sales of third-party steel products 175 200 -12.7% 180 -2.8%
Sales of coking coal products 3,278 2,514 30.4% 2,656 23.4%
Sales of iron ore products 355 273 30.0% 464 -23.5%
Sales of vanadium in slag 765 1,923 -60.2% 1,176 -34.9%
Sales of vanadium final products1 3,168 3,514 -9.9% 2,518 25.8%

Note. Numbers in this table and the tables below may not add up to totals due to rounding.

1 In tonnes of pure vanadium.