17th Jul 2015 06:34
LONDON (Alliance News) - Evraz PLC Friday said most of its production fell quarter-on-quarter, some of which it expected, with railway-product production rising from increased demand in Russia and the US.
The FTSE 250-listed steel making and multi-commodity mining company said consolidated crude steel output reached 3.4 million tonnes in the second quarter of 2015, down 14% quarter-on-quarter due to repair and maintenance works at its Russian steel mills and the de-consolidation of EVRAZ Highveld Steel and Vanadium.
Production of steel products fell 14% quarter-on-quarter to 3.2 million tonnes from 3.6 million tonnes also because of repairs and maintenance work as well as softer demand for tubular goods in North America. Tubular good production fell 32% to 173,000 tonnes from 255,000 tonnes.
All other finished steel products also experienced a fall quarter-on-quarter, with construction products falling 4.8% to 1.1 million tonnes from 1.2 million tonnes, flat rolled products dropping to 166,000 tonnes from 207,000 tonnes, and other steel products falling to 148,000 tonnes from 162,000 tonnes.
The only segment in the finished steel product production that experienced a lift was railway products, such as track, which increased 6.9% to 427,000 tonnes from 400,000 tonnes due to increased orders by Russian Railways and by railroads in the US.
Raw coking coal production dramatically fell by 30% to 3.8 million tonnes in the second quarter from 5.5 million tonnes in the previous quarter. Coking coal concentrate production fell 8% to 3.1 million tonnes from 3.4 million tonnes.
Those falls in coal production were due to lower production at the Raspadskaya coal company and Yuzhkuzbassugol, both based in Russia as a result of scheduled longwall moves and adjustment of production plans in response to weak market conditions.
By Joshua Warner; [email protected]; @JoshAlliance
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