15 Jul 2011 16:35

Evraz steel output down 1% in Q2

MOSCOW. July 15 (Interfax) - Russian steel major Evraz Group turned out 1.2% less steel year-on-year in the second quarter - 4.232 million tonnes in all, the company said.

Finished metal-product output was up an average of 9%, though that of semi-finished products decreased 19%, a company statement says.

The company's Russian plants were operating at full capacity. Steel-smelting in the country declined from the previous quarter by 5% due to scheduled work on blast furnace #2 at its West Siberian metals complex in April and on #1 in June, as well as an April shortage of raw material caused by the under-receipt of pellets from Mikhailovsky GOK and a seasonal shortage of scrap.

The [production of construction roll in Russia increased 12% from last year during the quarter, that of flat roll 14%.

"Raw coking coal production at Yuzhkuzbassugol decreased by 5% [to 1.756 million tonnes] against Q1 2011 as a result of temporary shutdowns at the Alardinskaya and Osinnikovskaya mines to resolve operational issues related to potential safety risks. The losses were partially offset by increased production in Q2 2011 by Abashevskaya and Yesaulskaya mines (the latter was closed for longwall repositioning in 1Q 2011)," the company reported. However, coking coal extraction increased 21.6% year-on-year.

The statement said: "EVRAZ DMZ increased production of finished steel, decreasing volumes of semi-finished goods. In particular, volumes of finished construction steel rose 22% and 10% compared to the second quarter of 2011 and the first quarter of 2011, respectively.

"In the second quarter of 2011, flat-rolled production increased by 14% from the first quarter of 2011 and by 32 from second quarter of 2010 due to growth in end-user demand for commodity plate, driven by improved market sentiment. In particular, the service center industry is increasing inventories to historical levels and fabricators operating in the wind tower, tank and transmission line businesses have higher demand.

"Rail production increased by11% when comparing the second quarter for 2011 to the first quarter and by 36% compared to the same quarter in 2010 as class one railroads (Union Pacific Railroad, BNSF Railway and Canadian Pacific Railway) are expanding infrastructure and stockpiling rail for upcoming projects in 2011 and 2012. Our enhanced focus on rail quality resulted in increased share in North American market."

Evraz enterprises boosted production commercial railway materials by 12%, up 14% in Russia, driven by "debottlenecking at Evrazruda and more stable operations".

Production of finished vanadium goods (ferrovanadium - Nitrovan) increased substantially, driven by stronger demand.

Evraz main production results for Q2 and Q1 (in thousands of tonnes):

Q2 2011 Q2 2010 % Q1. 2011 %
Steel products
Coke (saleable) 449 448 0,2% 425 5,5%
Pig iron 2 929 3 093 (5,3)% 3 066 (4,5)%
- pig iron (saleable) 56 20 182,1% 22 159,4%
Crude Steel 4 232 4 282 (1,2)% 4 388 (3,6)%
Rolled products 3 888 3 825 1,7% 3 974 (2,2)%
- semi-finished 846 1 045 (19,0)% 1 048 (19,2)%
- construction products 1 300 1 210 7,4% 1 274 2,1%
- railway products 549 525 4,7% 502 9,3%
- flat rolled products 769 656 17,1% 720 6,8%
- tubular products 219 216 1,6% 199 10,1%
- other steel products 204 173 18,5% 232 (11,8)%
Russia :
Coke (saleable) 144 158 (8,4)% 140 3,0%
Pig iron 2 539 2 688 (5,6)% 2 654 (4,3)%
- pig iron (saleable) 15 16 (7,5)% 15 1,8%
Crude Steel 3 026 3 117 (2,9)% 3 187 (5,0)%
Rolled products 2 720 2 855 (4,7)% 2 858 (4,8)%
- semi-finished 1 027 1 281 (19,9)% 1 231 (16,6)%
- construction products 1 034 923 12,0% 1 003 3,1%
- railway products 421 430 (2,2)% 387 8,8%
- flat rolled products 81 71 13,6% 75 7,8%
- other steel products 158 149 6,4% 162 (2,7)%
Ukraine :
Coke (saleable) 304 291 4,8% 285 6,8%
Pig iron 232 231 0,4% 220 5,4%
- pig iron (saleable) 41 4 n/a 7 n/a
Crude Steel 203 238 (14,7)% 230 (11,8)%
Rolled products 169 213 (20,6)% 204 (17,3)%
- semi-finished 28 109 (73,8)% 74 (61,6)%
- construction products 115 95 22,1% 105 10,1%
- other steel products 25 10 161,5% 25 (1,3)%
Europe:
Crude Steel 220 165 33,5% 182 21,1%
Rolled products 343 330 3,8% 369 (7,1)%
- semi-finished 35 49 (29,3)% 32 9,9%
- flat rolled products 303 274 10,4% 302 0,2%
- other steel products 6 7 (20,7)% 36 (84,0)%
North America:
Crude Steel 609 585 4,0% 588 3,5%
Rolled products 716 630 13,6% 658 8,8%
- construction products 69 94 (26,7)% 80 (13,5)%
- railway products 129 94 36,3% 116 11,1%
- flat rolled products 299 226 32,4% 264 13,5%
- other steel products 219 216 1,6% 199 10,1%
South Africa :
Pig Iron 158 174 (8,9)% 192 (17,7)%
Crude Steel 173 176 (1,6)% 201 (13,8)%
Rolled products 159 141 12,6% 157 1,1%
- semi-finished 11 0 n/a 17 (32,2)%
- construction products 47 49 (4,7)% 54 (13,1)%
- flat rolled products 85 85 0,5% 79 8,7%
- other steel products 16 7 115,2% 8 93,3%
Mining products
Iron ore:
- Lumpy ore (Ukraine) 743 242 206,8% 345 115,5%
- Concentrate, saleable (Russia) 1 675 1 471 13,9% 1 466 14,3%
- sinter (Russia) 1 108 1 114 (0,5)% 1 121 (1,2)%
- pellets (Russia) 1 421 1 369 3,8% 1 516 (6,3)%
- fines ore (South Africa) 151 147 3,0% 152 (1,0)%
- lumpy ore (South Africa) 298 445 (32,9)% 359 (17,0)%
Coal