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EVRAZ Q2 2020 trading update

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

Q2 2020 vs Q1 2020 HIGHLIGHTS

  • In Q2 2020, EVRAZ’ consolidated crude steel output fell by 5.1% QoQ, mainly due to capital repairs and gas pause at EVRAZ ZSMK in June as well as capital repairs at EVRAZ NTMK in May.
  • Total sales of steel products rose by 4.9% QoQ. Sales of semi-finished products increased by 19.5% QoQ following change in the product mix in favour of slab and billets resulted from decline in demand for finished products during the COVID-19 pandemic.
  • Sales of finished products fell by 6.9% amid weak market demand in Russia and North America as well as due to lower production volumes in Russia following scheduled capital repairs.
  • Total raw coking coal production decreased by 26.8% QoQ, driven by weaker demand for coal on global markets. Production at the Razrez Raspadsky open pit and at Mezhegeyugol has been suspended until favourable market conditions are restored. The decline was also due the move of the longwall at the Alardinskaya mine.
  • External sales volumes of coking coal products dropped by 14.6% QoQ, caused by lower shipments to Europe amid unfavourable market conditions.
  • External sales of iron ore products jumped by 25.6% QoQ amid higher shipments to the domestic market in Q2 2020.
  • Sales of vanadium products fell by 22.6% QoQ mainly due to lower steel utilisation rates as well as general decrease of vanadium demand following COVID 19 restrictions. The regional sales and product mix was changed to serve the more active Chinese oxide market during Q2 2020.
Product, ‘000 tonnes Q2 2020 Q1 2020 Q2 2020/ Q1 2020, change H1 2020 H1 2019 H1 2020/ H1 2019, change
Total crude steel production 3,377 3,559 -5.1% 6,936 6,986 -0.7%
Russia 2,992 3,121 -4.1% 6,113 5,992 2.0%
North America 385 438 -12.1% 823 994 -17.2%
Total raw coking coal mined 4,165 5,692 -26.8% 9,857 13,840 -28.8%
Total coking coal concentrate production 3,820 3,747 1.9% 7,567 8,142 -7.1%
Iron ore products production 3,460 3,595 -3.8% 7,055 7,169 -1.6%
Total sales of steel products 3,382 3,224 4.9% 6,605 6,510 1.5%
Semi-finished products 1 1,724 1,443 19.5% 3,167 2,702 17.2%
Finished products 1, 2 1,658 1,781 -6.9% 3,438 3,808 -9.7%
Total sales of third-party steel products 197 175 12.6% 372 376 -1.1%
Sales of coking coal products 2,800 3,278 -14.6% 6,079 5,585 8.8%
Sales of iron ore products 446 355 25.6% 801 699 14.6%
Sales of vanadium in slag 1,996 765 n/a 2,761 2,836 -2.6%
Sales of vanadium final products 3 2,450 3,168 -22.6% 5,618 5,784 -2.9%

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

1 The Q1 2020 data have been adjusted

2 The H1 2019 data have been adjusted

3 In tonnes of pure vanadium