EVRAZ Q4 2014 and FY 2014 production report

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EVRAZ Q4 2014 and FY 2014 production report

EVRAZ plc (LSE: EVR) today releases its operational results for the fourth quarter of 2014 and the full year of 2014.


· Consolidated crude steel production and output of steel products, net of rerolled volumes, decreased by 4% and 5% respectively, mostly as a result of the disposal in April 2014 of EVRAZ Vitkovice Steel in the Czech Republic and the shutdown of EVRAZ Claymont operations in the USA at the end of 2013 as part of the group wide optimisation plan

· The share of semi-finished products in our shipments increased to 31% from 26% in 2013 as a result of a shift in sales from Russia to export destinations driven partially by a weakening rouble, and by a reduction in intercompany supply of slabs for further re-rolling at EVRAZ’s rolling mills in Europe and at EVRAZ Claymont due to disposal, shutdown, or suspension of such mills

· EVRAZ ZSMK successfully implemented the pulverised coal injection (PCI) project leading to a sustainable reduction of operating costs

· The EVRAZ Caspian Steel rolling mill in Kazakhstan was commissioned and began mass production of rebars from EVRAZ ZSMK’s billets

· Stable production volumes of saleable iron ore products in Russia (on a comparable basis, excluding volumes from disposed EVRAZ VGOK)

· Coking coal production grew by 11% due to increased output of 31% at the Raspadskaya coal company. This represents a return to pre-accident levels of annualised production of over 10 million tonnes of coking coal

· Prices for steel products and their key raw material inputs were negatively affected by continuing headwinds in the global markets and depreciation of local currencies in Russia and Ukraine


· Consolidated crude steel output stable at 3.9 million tonnes per quarter

· Production of steel products, net of re-rolled volumes, increased by 6%, mostly driven by a 31% increase in production of semi-finished products due to higher shipments of more profitable export billets and slabs

· The share of finished steel products within consolidated volumes decreased to 63% in Q4 2014 vs. 69% in Q3 2014 due to higher exports of semi-finished products and weaker demand for construction products and railway products in Russia

· Production of tubular products in North America increased by 6%, mostly driven by strong market demand for large diameter pipe and operational improvements at our OCTG facilities

· Consolidated raw coking coal output and production of coking coal concentrate increased by 12% and 8% respectively due to strong performance of the Raspadskaya coal company.

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