Evraz Group sees three percent rise in crude steel output in 2011

Global steelmaking and mining giant Evraz Group S.A., whose operations are mainly focused on Russia, has posted a three percent year-on-year increase in crude steel production for 2011, reaching 16.773 million mt. The trend of redistribution of available steel volumes towards higher value-added finished products has become even more evident as domestic markets for EVRAZ's plants in Russia, Ukraine, North America and South Africa showed signs of recovery in 2011.
 
In Evraz's North American division, crude steel production was flat year-on-year - 2.332 million mt in 2011 against 2.317 million mt in 2010 - and decreased by 9.4 percent in Q4 2011 compared to the previous quarter, falling to 543,000 mt, due to scheduled maintenance of steelmaking facilities in Pueblo and Regina in October.
 
However, the crude steel production of Evraz's Russian division increased slightly in 2011, by 1.4 percent year on year, to 12.125 million mt and by three percent quarter on quarter in Q4 2011 to 3.003 million mt due to completion of scheduled maintenance.
 
While rail production in the Russian division increased by 4.8 percent year on year in 2011 reaching 1.564 million mt, annual rail production at EVRAZ Pueblo rose 23.6 percent year on year in the given year reaching 490,000 mt, reflecting increased demand for ongoing and upcoming projects from US Class One railroads.
 
Production of tubular goods in the North American division fell by 6.1 percent year on year in 2011 to 848,000 mt and by 18.4 percent quarter on quarter in Q4 2011 to 194,000 mt, as a result of the temporary idling of a spiral mill in Regina due to subdued demand for large diameter pipe (LDP).
 
Evraz's production of saleable iron ore products in Russia in 2011 increased by 10.7 percent year on year to 6.447 million mt and was mainly attributable to more stable operations and debottlenecking at Evrazruda and the launch of a debottlenecking and expansion program at EVRAZ KGOK. In 2011, sinter production in Russia rose by 11.9 percent compared to 2010 to 4.473 million mt. Meanwhile, fine ore production from Evraz Group's South African mines in 2011 increased by 6.5 percent year on year to 640,000 mt, while lump ore output fell by 27.1 percent from the 2010 volume to 1.257 million mt.
 
In 2011, Evraz's raw coking coal production decreased by 16.1 percent year on year to 6.303 million mt due to several longwall repositionings and temporary stoppages of some mines for additional implementation of safety equipment and procedures.