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EVRAZ Q2 2019 TRADING UPDATE

EVRAZ Q2 2019 TRADING UPDATE

31 July 2019 — EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today released its trading update for the second quarter of 2019.

Q2 2019 vs Q1 2019 HIGHLIGHTS

In Q2 2019, EVRAZ’ consolidated crude steel output remained flat QoQ.

  • Total steel product sales rose by 7.7% QoQ, driven by higher demand. Sales of finished products climbed by 10.1% due to higher sales of construction products in Russia and railway products in North America.
  • Raw coking coal production grew by 2.2% QoQ. Raw coking coal concentrate output climbed by 21% QoQ to 4.5mt, mainly due to greater processing volumes and lower ash content.
  • External sales volumes of coking coal products surged by 10.3% QoQ due to increased coking coal concentrate sales after the longwall repositioning at Yuzhkuzbassugol’s Alardinskaya mine in Q1 2019 and greater shipments to Russia’s Far East. This was partly offset by lower raw coking coal sales amid lower demand at the markets in Eastern Europe.
  • External sales of iron ore products dropped by 49.4% QoQ as volumes were redistributed towards exports amid reduced demand on the domestic market.
  • Sales of final vanadium products rose by 29.7% QoQ, as lower prices and FeV stocks at end users have stimulated spot demand, particularly in the EU, Asia and North America.
Financial Highlights
Product, kt Q2 2019 Q1 2019 Q2 2019/ Q1 2019, change H1 2019 H1 2018 H1 2019/ H1 2018, change
Total crude steel production 3,507 3,488 0.5% 6,995 6,814 2.7%
Russia 3,006 2,986 0.7% 5,992 5,726 4.6%
Ukraine 0 0 n/a 0 154 -100%
North America 501 502 -0.2% 1,003 934 7.4%
Total raw coking coal mined 6,996 6,844 2.2% 13,840 11,391 21.5%
Total coking coal concentrate production 4,458 3,684 21.0% 8,142 8,061 1.0%
Iron ore products production 3,533 3,636 -2.8% 7,169 6,855 4.6%
Total sales of steel products1 3,377 3,135 7.7% 6,512 6,220 4.7%
Semi-finished products 1,395 1,335 4.5% 2,730 2,516 8.5%
Finished products2 1,982 1,800 10.1% 3,782 3,704 2.1%
Total sales of third-party steel products 221 180 22.8% 401 417 -3.8%
Sales of coking coal products 2,929 2,656 10.3% 5,585 5,599 -0.3%
Sales of iron ore products3 235 464 -49.4% 699 1,089 -35.8%
Sales of Vanadium in slag3 1,660 1,176 41.2% 2,836 2,814 0.8%
Sales of vanadium final products4 3,266 2,518 29.7% 5,784 6,456 -10.4%

1 The Q2 2019 production and sales volumes of EVRAZ North America are preliminary.

2 The Q1 2019 data have been adjusted.

3 The H1 2018 data have been adjusted.

4 in tonnes of pure vanadium