Evraz reduces Q3 steel output 3% to 3.9 mln tonnes
MOSCOW. Oct 18 (Interfax) - Evraz plc reduced crude steel production 3% in Q3 2012 compared with the previous quarter to 3.909 million tonnes, the company said in a statement.
Output fell mainly due to lower production at EVRAZ Vitkovice Steel in the Czech Republic and EVRAZ Highveld in South Africa.
Production fell 2.9% year-on-year.
Despite reduced crude steel output total production volumes of steel products increased by 1.8% quarter-on-quarter to 3.685 million tonnes, mostly due to greater use of purchased third parties slabs. Product output fell 1.1% year-on-year.
Coking coal production increased by 20% and steam coal production by 27% compared to Q2 2012 in the absence of any longwall repositionings at the coal mines.
Evraz operating highlights (general):
| Product, '000 tonnes | Q3 2012 | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Coke (saleable) | 367 | 324 | 13.4% | 429 | (14.5)% |
| Pig iron | 3,006 | 2,865 | 4.9% | 2,889 | 4.1% |
| Pig iron (saleable) | 67 | 29 | 128.5% | 27 | 149.0% |
| Crude steel | 3,909 | 4,024 | (2.9)% | 4,035 | (3.1)% |
| Steel products, net of re-rolled volumes | 3,658 | 3,697 | (1.1)% | 3,594 | 1.8% |
| Semi-finished products | 979 | 793 | 23.5% | 803 | 21.9% |
| Finished products | 2,679 | 2,904 | (7.8)% | 2,791 | (4.0)% |
| Construction products | 1,345 | 1,351 | (0.4)% | 1,249 | 7.7% |
| Railway products | 392 | 517 | (24.2)% | 500 | (21.6)% |
| Flat-rolled products | 569 | 609 | (6.5)% | 648 | (12.1)% |
| Tubular products | 219 | 238 | (8.2)% | 211 | 3.5% |
| Other steel products | 153 | 188 | (18.7)% | 183 | (16.2)% |
RUSSIA
| Product, '000 tonnes | Q3 2012 | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Coke (saleable) | 135 | 128 | 5.4% | 139 | (3.1)% |
| Pig iron | 2,695 | 2,540 | 6.1% | 2,487 | 8.4% |
| Pig iron (saleable) | 45 | 18 | 147.2% | 22 | 101.9% |
| Crude steel | 2,931 | 2,909 | 0.7% | 2,819 | 4.0% |
| Steel products, net of re-rolled volumes | 2,721 | 2,639 | 3.1% | 2,574 | 5.7% |
| Semi-finished products | 1,122 | 915 | 22.6% | 949 | 18.2% |
| Finished products | 1,599 | 1,724 | (7.3)% | 1,625 | (1.6)% |
| Construction products | 1,127 | 1,089 | 3.5% | 1,037 | 8.7% |
| Railway products | 277 | 396 | (30.1)% | 366 | (24.4)% |
| Flat-rolled products | 74 | 102 | (27.2)% | 84 | (11.8)% |
| Other steel products | 120 | 137 | (11.9)% | 138 | (12.5)% |
UKRAINE
| Product, '000 tonnes | Q3 2012 | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Coke (saleable) | 232 | 196 | 18.6% | 290 | (20.0)% |
| Pig iron | 227 | 209 | 8.3% | 239 | (4.9)% |
| Pig iron (saleable) | 22 | 11 | 98.5% | 5 | 366.9% |
| Crude steel | 208 | 215 | (3.5)% | 251 | (17.1)% |
| Steel products | 162 | 186 | (13.0)% | 215 | (24.5)% |
| Semi-finished products | 49 | 47 | 3.8% | 98 | (50.2)% |
| Finished products | 113 | 139 | (18.6)% | 117 | (2.9)% |
| Construction products | 88 | 118 | (25.1)% | 92 | (3.8)% |
| Other steel products | 25 | 22 | 16.5% | 25 | 0.3% |
NORTH AMERICA
| Product, '000 tonnes | Q3 2012* | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Crude steel | 611 | 599 | 2.1% | 616 | (0.8)% |
| Steel products, net of re-rolled volumes | 664 | 675 | (1.6)% | 678 | (2.1)% |
| Construction products | 78 | 81 | (3.4)% | 79 | (1.9)% |
| Railway products | 115 | 121 | (4.7)% | 134 | (13.9)% |
| Flat-rolled products | 252 | 236 | 7.1% | 254 | (0.5)% |
| Tubular products | 219 | 238 | (8.2)% | 211 | 3.5% |
EUROPE
| Product, '000 tonnes | Q3 2012 | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Crude steel | 81 | 181 | (55.1)% | 197 | (58.6)% |
| Steel products | 237 | 270 | (12.4)% | 267 | (11.3)% |
| Construction products | 26 | 32 | (19.5)% | 0 | n/a |
| Flat-rolled products | 207 | 216 | (4.1)% | 243 | (14.7)% |
| Other steel products | 4 | 22 | (83.8)% | 23 | (84.7)% |
SOUTH AFRICA
| Product, '000 tonnes | Q3 2012 | Q3 2011 | Q3 2012/ Q3 2011, change | Q2 2012 | Q3 2012/ Q2 2012, change |
| Pig iron | 84 | 116 | (27.1)% | 163 | (48.3)% |
| Crude steel | 78 | 120 | (35.3)% | 153 | (49.3)% |
| Steel products | 65 | 111 | (40.9)% | 124 | (47.3)% |
| Semi-finished products | 0 | 16 | n/a | 3 | n/a |
| Finished products | 65 | 95 | (31.1)% | 121 | (46.1)% |
| Construction products | 27 | 32 | (17.4)% | 41 | (34.8)% |
| Flat-rolled products | 35 | 55 | (36.5)% | 66 | (47.5)% |
| Other steel products | 4 | 8 | (49.9)% | 14 | (72.4)% |
It is expected that in Q4 2012 crude steel production in Russia will be negatively affected by scheduled repairs of converter No 4 at EVRAZ NTMK and of converter No 4 at EVRAZ ZSMK.
The completion of the PCI project at EVRAZ ZSMK has been delayed until Q2 2013 due to revisions in the project design documentation.
Q4 2012 coking coal production is expected to decrease, largely driven by a 60-day longwall repositioning at the Osinnikovskaya mine.
Production of raw steam coal remained unchanged compared to the same period last year and increased by 27% vs. Q2 2012 due to the loss of a month's production volumes at the Gramoteinskaya mine in April-May as a result of a fire at the mine. Steam coal concentrate production decreased by 61% vs. Q3 2011 and by 31% vs. Q2 2012 due to larger raw coal sales.
Q4 2012 steam coal production is expected to be flat, quarter-on-quarter.
Evraz is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. Evraz is among the top 20 steel producers in the world based on crude steel production of 16.8 million tonnes in 2011.
In 2011 Evraz sold 15.5 million tonnes of steel products. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations.
