18th Oct 2013 07:46
LONDON (Alliance News) - Evraz PLC Thursday said its crude steel production fell in its third quarter as scheduled maintenance work lead to lower output across its assets.
Evraz said that due to weak market conditions it has decided to suspend operations at its Claymont steel mill in the US and at the EVRAZ Palini e Bertoli steel plate mill in Italy. It also noted that its steel shop at EVRAZ Vitkovice Steel in the Czech Republic was operational for less than a month in the third quarter.
The global mining and minerals company said its crude steel production fell 3.1% to 4.0 million tonnes for the three months ended September 30 compared to 4.1 million tonnes the previous year.
The company said the drop in steel production was due to lower output across all assets as a result of scheduled maintenance works in Russia, the idling of the Czech mill, and operational issues in South Africa.
The company said there remains strong demand for its steel products in Russia and the US but that the average selling prices for most of its steel product groups continue to be depressed by downward trends in the global steel market.
On the other hand, Evraz was highlighted improvements in its coal and iron-ore divisions. The company's consolidated raw coking coal output increased by 11%, driven by a strong performance of its Yuzhkuzbassugol and Raspadskaya mines in eastern Russia.
Saleable iron ore concentrate production at the site increased by 4% to 1.3 million tonnes but the company's overall saleable iron ore production fell 1%, mostly due to big falls in production at the company's South African operations.
The company also struggled with its vanadium production which decreased 12% to 4,808 tonnes from 5,473 tonnes the previous year as slowdowns at the company's other sites reduced the amount of pig iron, a key component of its final vanadium products, coming to the sites. Vanadium is an ingredient used to strength steel.
The company said it is currently focussed on a strategic development programme which includes the sale of its VGOK iron ore mining and processing plant and its Gramoteinskaya steam coal mine in Russia.
The company said its capital expenditure during the recent three months totalled USD227 million compared to USD270 million the previous year, and the company reiterated its plan for full-year capital expenditure of between USD900 million and USD1 billion.
Evraz shares were flat at 132.00 pence in early trading Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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