Global steelmaking and mining giant Evraz Group S.A. has announced that its crude steel output amounted to 3.9 million mt in the third quarter of 2012, decreasing by 3.1 percent quarter on quarter and by 2.9 percent compared to the same quarter of the previous year. The decreases are mainly due to decreased steel production levels at Evraz steel mills in the Czech Republic and South Africa.
In the given quarter, the crude steel production of the Russian division of Evraz Group increased by 0.7 percent year on year to 2.93 million mt. It is expected that in the fourth quarter, crude steel production at the Russian unit will be negatively affected by scheduled repairs of converter No. 4 at Evraz NTMK and of converter No. 4 at Evraz ZSMK.
Evraz's Ukraine operations registered a 3.5 percent decline in crude steel output in the third quarter due to the scheduled maintenance in the converter shop which began in mid-September and will continue to the end of October. In the third quarter, the North America unit announced a 2.1 percent increase, while the crude steel produced by the company's European operations decreased by 55.1 percent, both year on year.
According to Evraz's statement, the decline in European operations was due to the production halt at Czech-based Evraz Vitkovice, though the company said that the rolling mill and heavy section mills will remain open as the company has open orders through the end of 2012.
Evraz stated that prices for most steel product groups declined due to ongoing uncertainty in global steel markets and decreasing prices of iron ore and coking coal. For the fourth quarter, the company expects to witness the usual seasonal trends, including a slowdown in construction activity in Russia.