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%|
|Total raw coking coal mined||5,692||5,981||-4.8%||6,844||-16.8%|
|Total coking coal concentrate
|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%|
|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.