1st Nov 2019 08:35
(Alliance News) - Russian steel maker Evraz PLC on Friday said its steel production fell during the third quarter of 2019 due to repairs at its metal plant in Siberia and weaker demand in North America.
Crude steel production in the three months to September fell by 3.4% quarter-on-quarter to 3.4 million tonnes from 3.5 million tonnes. Nine-month output stands at 10.4 million tonnes, representing a 4.5% year-on-year climb from 9.9 million tonnes a year before.
The FTSE 100 firm said its total sales of steel products stayed broadly flat quarter-on-quarter at 3.4 million tonnes.
The company explained: "Consolidated crude steel output decreased by 3.4% quarter-on-quarter, mainly due to lower production volumes at Evraz ZSMK amid scheduled capital repairs. Production was also impacted by reduced output at Evraz' US and Canadian mills following scheduled downtimes and by weaker demand."
Raw coking coal production in the quarter fell by 9.7% to 4.2 million tonnes from 4.5 million tonnes in the second quarter. Sales however climbed 0.8% during the period to 3.0 million tonnes from 2.9 million tonnes.
Evraz decided to scale back production at the Raspadskaya mine, Siberia, due to a "substantial accumulated stockpiles of raw coal".
Vanadium sales grew by 9.8% to 3.6 million tonnes from 3.3 million tonnes recorded in the second quarter, though iron ore sales tumbled by 31% on quarter to 162,000 tonnes from 235,000 tonnes.
Evraz shares were 1.1% lower at 363.20 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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