EVRAZ Q1 2021 Trading Update
EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today released its trading update for the first quarter of 2021.
Q1 2021 vs Q4 2020 HIGHLIGHTS
- In Q1 2021, EVRAZ’ consolidated crude steel output fell by 1.7% QoQ, mainly due to unscheduled downtime of the sintering machine at EVRAZ ZSMK.
- Total sales of steel products dropped by 9.9% QoQ, driven primarily by lower sales of semi-finished products amid reduced steel availability due to lower pig-iron production volumes as well as seasonal decline in sales of construction products and local decrease in demand for rails in Russia.
- Total raw coking coal production climbed by 7.8% QoQ. Most of the growth came from the Novokuznetsk site, where the Uskovskaya mine finished moving to a new longwall and the Erunakovskaya mine dealt with the impact on its production from higher gas levels in Q4 2020. While the Mezhdurechensk site’s overall output was little changed, Razrez Raspadsky increased its volumes by 120% QoQ after resuming production in Q3 2020.
- Coking coal concentrate production grew by 3.6% QoQ, mainly due to increased coal mining volumes.
- External sales of iron ore products fell by 30.1% QoQ. One of the primary drivers was a decline in concentrate production at EVRAZ KGOK which went down due to lower Fe content in mined ore and severe weather conditions, resulted in unscheduled equipment repairs. In addition, shipments of iron ore products to EVRAZ NTMK were increased to restore reserves.
- External sales of vanadium products fell by 19.7% QoQ due to serving the more active Chinese oxide market (supported by destocking) as well as accelerating oxide sales by changing the regional oxide sales mix in Q4 2020.
|Product, ‘000 tonnes||Q1 2021||Q4 2020||Q1 2021/ Q4 2020, change||Q1 2020||Q1 2021/ Q1 2020, change|
|Total crude steel production||3,409||3,467||-1.7%||3,559||-4.2%|
|Total raw coking coal mined||6,492||6,021||7.8%||5,692||14.1%|
|Total coking coal concentrate production||4,236||4,088||3.6%||3,747||13.1%|
|Iron ore products production||3,394||3,642||-6.8%||3,595||-5.6%|
|Total sales of steel products 1||3,071||3,410||-9.9%||3,225||-4.8%|
|Total sales of third-party steel products||134||209||-35.9%||175||-23.4%|
|Sales of coking coal products||2,824||2,797||1.0%||3,278||-13.8%|
|Sales of iron ore products||311||445||-30.1%||355||-12.4%|
|Sales of vanadium in slag||1,135||1,763||-35.6%||765||48.4%|
|Sales of vanadium final products 2||3,378||4,207||-19.7%||3,168||6.6%|
Note. Numbers in this table and the tables below may not add up to totals due to rounding.
1 Q1 2021 production and sales volumes of EVRAZ North America are preliminary
2 In tonnes of pure vanadium