Russia’s Evraz sees production and sales decline in Q3 from Q2

Tuesday, 03 November 2020 17:04:53 (GMT+3)   |   Istanbul
       

In the third quarter of the current year, Russian mining and steelmaking company Evraz Group showed again a weaker production performance compared to the previous quarter, affected mostly by the consequences of Covid-19.

Accordingly, in the July-September period this year, Evraz's total crude steel production fell by 4.4 percent quarter on quarter to 3.227 million mt, mainly due to the planned shutdown of blast furnace (BF) No. 5 and the launch of BF No. 6 after the completion of a major overhaul at EVRAZ NTMK. Concurrently, in the third quarter the company’s pig iron production decreased by 3.8 percent quarter on quarter to 2.686 million mt. In the fourth quarter, pig iron output is expected to increase following the launch of BF No. 6.

On the contrary, in the third quarter the company’s output of raw coking coal increased by 14.6 percent quarter on quarter to 4.775 million mt, driven by the completion of longwall moves at the Alardinskaya and Esaulskaya mines in the second quarter. While production at the Razrez Raspadsky open pit remained suspended during the given period due to unfavourable market conditions, operations were resumed in October amid dwindling stockpiles and rising prices for coal products.

Meanwhile, the company’s production of iron ore products in the third quarter amounted to 3.508 million mt, rising by 1.4 perceny quarter on quarter, mainly due to an increase in primary concentrate production volumes at EVRAZ ZSMK. This was partly offset by scheduled capital repairs at EVRAZ KGOK’s sinter plant in the July-August period this year.

Meanwhile, in the third quarter, total steel sales of Evraz fell by 9.5 percent quarter on quarter to 3.062 million mt. In particular, sales of semi-finished products declined by 24.1 percent quarter on quarter to 1,309 million mt. The decline was partially offset by sales of finished products. Accordingly, in the third quarter of the current year, Evraz’s sales of finished products increased by 5.7 percent quarter on quarter to 1.753 million mt, amid better market conditions in Russia and an improved product mix.

In the July-September period this year, external sales of coking coal products inched up by 23.6 percent quarter on quarter to 3.460 million mt. In the meantime, sales of iron ore products surged by nine percent quarter on quarter to 486,000 mt, amid higher shipments to export destinations.


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