31st Jan 2022 10:07
(Alliance News) - Evraz PLC on Monday said steel production was hurt by an export duty imposed in Russia in which lasted until the end of 2021, but saw healthy increases in sales of both steel and vanadium products as key steel consuming sectors rebounded from the global pandemic.
London-based Evraz is a steel, mining and vanadium business with operations in Russia, the US, Canada, the Czech Republic and South Africa.
In the fourth quarter of 2021, consolidated crude steel output fell by 0.6% to 3.4 million tonnes from the third quarter and total sales of steel products increased by 7.0% to 3.2 million tonnes from just under 3.0 million.
The miner said the fall in output was due to maintenance outages in November in North America, while sales were buoyed by strong market demand.
Output of iron ore products climbed by 7.0% quarter-on-quarter to 3.8 million tonnes from 3.5 million. External sales of iron ore products jumped by 58% to 479,000 tonnes from 303,000, following the start of sales to China through the port of Ust-Luga in Russia.
Sales of vanadium products surged by 31% to 3.8 million tonnes from 2.9 million, thanks to higher demand in Europe and North America. Vanadium is often used as a steel additive, with vanadium-steel alloys used to make armour plates, axles, tools, piston rods and crankshafts.
Looking at 2021 as a whole, consolidated crude steel production slipped 0.4% year-on-year to just under 13.6 million tonnes as crude steel production volumes fell after Russia introduced an export duty which led to lower margins from pig iron production.
Russia slapped an export duty on ferrous and major base metals in early August last year, which then lasted until the end of 2021.
Total sales of steel products dropped by 4.5% to 12.5 million tonnes from 13.1 million.
"This was partly because of the impact that the export duty introduced in Russia in 2021 had on the output of semi-finished products for export, and partly because of a high-base effect following the fulfilment of a contract with the key customer in 2020 in North America," Evraz said.
Output of iron ore products rose by 1.4% to 14.4 million tonnes from 14.2 million.
External iron ore product sales fell by 17% to 1.4 million tonnes from 1.7 million. The fall in sales was due to a concentrate shortage in the first quarter.
Sales of vanadium products rose by 5.7% year-on-year to 13.3 million tonnes from 12.6 million tonnes, due to overall stronger demand in 2021, caused by the recovery of key steel consuming sectors globally.
Evraz shares rose 1.8% to 511.00 pence each in London on Monday morning.
By Greg Roxburgh; [email protected]
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