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Evraz 4Q Crude Steel Output Hurt by North American Maintenance Outages — Commodity Comment – MarketWatch

Evraz PLC reported a fall in fourth-quarter crude steel output, but said coking coal product sales volumes rose. Here’s what the London-based steelmaking and mining company said:
On crude steel:
“In 4Q 2021, Evraz’ consolidated crude steel output fell by 0.6% QoQ, mainly because of maintenance outages in November in North America.”
“The group’s consolidated crude steel production edged down by 0.4% YoY, as crude steel production volumes fell after Russia introduced an export duty (effective until the end of 2021), which led to lower margins from pig iron production at EVRAZ ZSMK.”
On steel products:
“Total sales of steel products increased by 7.0% QoQ. Sales of construction products were buoyed by market demand in the period, while sales of railway products were higher following the completion of capital repairs at EVRAZ ZSMK’s rail and beam shop and Evraz NTMK’s wheel shop.”
“Total sales of steel products dropped by 4.5% YoY. 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 fulfillment of a contract with the key customer in 2020 in North America.”
On coking coal:
“Total raw coking coal production surged by 34.4% QoQ, mainly because of the completion of longwall moves at the Raspadskaya, Osinnikovskaya and Yerunakovskaya-VIII mines.”
“Coking coal concentrate production grew by 11.2% QoQ amid greater coal mining volumes.”
“External sales volumes of coking coal products rose by 4.0% QoQ, as an increase in coal mining volumes allowed for greater coking coal concentrate sales volumes amid favorable market conditions.”
“Production of raw coking coal grew by 12.7% YoY. The main driver of the increase was the resumption of work at Razrez Raspadsky, which had halted operations from May to September 2020 amid poor market conditions. Another contributor was the transfer of operations at Esaulskaya to the new longwall no. 29.”
“Coking coal concentrate production grew by 2.8% YoY following the increase in coal mining volumes.”
“External sales volumes of coking coal products fell by 14.0% YoY amid lower raw coking coal sales following the change in the product mix in favor of coking coal concentrate to meet customer needs.”
On iron ore:
“Output of iron ore products climbed by 7.0% QoQ, driven by higher production volumes of pellets at Evraz KGOK and higher production of saleable concentrate at Evraz ZSMK following the completion of capital repairs.”
“External sales of iron ore products jumped by 58.1% QoQ following the start of sales to China through the port of Ust-Luga.”
“Output of iron ore products rose by 1.4% YoY, partly driven by higher production volumes of sinter in connection with the implementation of new initiatives in the efficiency improvement program for 2021, and partly by a low-base effect following capital repairs performed in 2020 at EVRAZ KGOK’s sinter machine no. 1.”
“External iron ore product sales fell by 17.4% YoY as a result of concentrate shortage in 1Q 2021, an increase in Evraz NTMK’s demand for pig iron in 2021.”
Write to Ian Walker at [email protected]
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