TIDMEVR
RNS Number : 5365U
Evraz Plc
30 July 2020
EVRAZ Q2 2020 TRADING UPDATE
30 July 2020 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group")
today released its trading update for the second quarter of
2020.
Q2 2020 vs Q1 2020 HIGHLIGHTS
-- In Q2 2020, EVRAZ' consolidated crude steel output fell by
5.1% QoQ, mainly due to capital repairs and gas pause at EVRAZ ZSMK
in June as well as capital repairs at EVRAZ NTMK in May .
-- Total sales of steel products rose by 4.9% QoQ. Sales of
semi-finished products increased by 19.5% QoQ following change in
the product mix in favour of slab and billets resulted from decline
in demand for finished products during the COVID-19 pandemic.
-- Sales of finished products fell by 6.9% amid weak market
demand in Russia and North America as well as due to lower
production volumes in Russia following scheduled capital
repairs.
-- Total raw coking coal production decreased by 26 .8% QoQ,
driven by weaker demand for coal on global markets . Production at
the Razrez Raspadsky open pit and at Mezhegeyugol has been
suspended until favourable market conditions are restored. The
decline was also due the move of the longwall at the Alardinskaya
mine.
-- External sales volumes of coking coal products dropped by 14
. 6 % QoQ, caused by lower shipments to Europe amid unfavourable
market conditions.
-- External sales of iron ore products jumped by 25.6% QoQ amid
higher shipments to the domestic market in Q2 2020.
-- Sales of vanadium products fell by 22.6% QoQ mainly due to
lower steel utilisation rates as well as general decrease of
vanadium demand following COVID 19 restrictions. The regional sales
and product mix was changed to serve the more active Chinese oxide
market during Q2 2020.
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 H1 H1 2020/ H1 2019, change
2020 2020 2020 2019
---------------------------- ------- ------- ------------------------- ------- ------- -------------------------
Total crude steel
production 3,377 3,559 -5.1% 6,936 6,986 -0.7%
Russia 2,992 3,121 -4.1% 6,113 5,99 2 2.0%
North America 385 438 -12.1% 823 994 -17.2%
Total raw coking coal mined 4,165 5,692 -26.8% 9,857 13,840 -28.8%
Total coking coal
concentrate
production 3,820 3,747 1.9% 7,567 8,142 -7.1%
Iron ore products
production 3,460 3,595 -3.8% 7,055 7,169 -1.6%
Total sales of steel
products 3,382 3,224 4.9% 6,605 6,510 1.5%
Semi-finished products
(1) 1,724 1,443 19.5% 3,167 2,702 17.2%
Finished products (1, 2) 1,658 1,781 -6.9% 3,438 3,808 -9.7%
Total sales of third-party
steel products 197 175 12.6% 372 376 -1.1%
Sales of coking coal
products 2,800 3,278 -14.6% 6,079 5,585 8.8%
Sales of iron ore products 446 355 25.6% 801 699 14.6%
Sales of vanadium in slag 1,996 765 n/a 2,761 2,836 -2.6%
Sales of vanadium final
products (3) 2,450 3,168 -22.6% 5,618 5,784 -2.9%
---------------------------- ------- ------- ------------------------- ------- ------- -------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
(1) The Q1 2020 data have been adjusted
(2) The H1 2019 data have been adjusted
(3) In tonnes of pure vanadium
STEEL SEGMENT
Total production volumes
Product, '000 tonnes Q2 2020 Q1 2020 Q2 2020/ Q1 2020, H 1 2020 H1 2019 H1 2020/ H1 2019,
change change
------------------------- -------- -------- ------------------------ --------- -------- ------------------------
Pig iron production 2,792 2,828 -1.3% 5,620 5,457 3.0%
EVRAZ ZSMK 1,532 1,556 -1.5% 3,088 3,001 2.9%
EVRAZ NTMK 1,260 1,272 -0.9% 2,532 2,456 3.1%
Crude steel production 2,992 3,121 -4.1% 6,113 5,992 2.0%
EVRAZ ZSMK 1,878 1,980 -5.2% 3,858 3,837 0.5%
EVRAZ NTMK 1,114 1,141 -2.4% 2,255 2,155 4.6%
Total steel products
production, net of
re-rolled volume(1) 2,739 2,867 -4.5% 5,606 5,381 4.2%
EVRAZ ZSMK 1,657 1,743 -4.9% 3,401 3,423 -0.6%
EVRAZ NTMK 994 1,032 -3.7% 2,025 1,638 23.6%
EVRAZ Caspian Steel 88 92 -3.9% 180 122 47.5%
Iron ore products
production 3,460 3,595 -3.8% 7,055 7,169 -1.6%
Pellets (EVRAZ KGOK) 1,616 1,665 -2.9% 3,281 3,216 2.0%
Sinter (EVRAZ KGOK) 905 916 -1.2% 1,821 1,826 -0.3%
Concentrate saleable
(EVRAZ KGOK,
Evrazruda) 939 1,014 -7.4% 1,953 2,127 -8.2%
Coking coal concentrate
production 496 486 2.1% 982 943 4.1%
From own raw coal(2) 480 350 37.1% 830 597 39.0%
From third-party raw
coal 16 136 -88.2% 152 346 -56.1%
Gross vanadium slag
production(3) 5,098 4,979 2.4% 10,077 8,979 12.2%
------------------------- -------- -------- ------------------------ --------- -------- ------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
(1) Including EVRAZ Palini e Bertoli which was sold in Q4
2019.
(2) From Coal segment
(3) In tonnes of pure vanadium
In Q2 2020, pig iron production remained almost flat QoQ at the
Russian mills.
Crude steel output decreased by 4.1% QoQ, mainly due to capital
repairs and gas pause at EVRAZ ZSMK in June as well as capital
repairs at EVRAZ NTMK in May.
Total output of steel products fell by 4.5% QoQ mainly due to
lower crude steel availability at EVRAZ NTMK and EVRAZ ZSMK. EVRAZ
Caspian Steel reduced production by 3.9% QoQ due to lower demand
from customers.
Output of iron ore products fell by 3.8% QoQ, mainly due to a
decrease in primary concentrate production volumes and the degree
of fluxing at mining operations of EVRAZ ZSMK (former
Evrazruda).
Total sales volumes
Product, '000 tonnes Q2 2020 Q1 Q1 2020/ Q4 2019, change H1 H1 H1 2020/ H1 2019, change
2020 2020 2019
------------------------ -------- ---------- ------------------------- ------- ------- -------------------------
Coke 81 105 -22.4% 186 178 4.5%
Steel products,
external sales 2,921 2,707 7.9% 5 628 5 353 5.1%
Semi-finished products 1,670 1,353 23.4% 3 023 2 572 17.5%
Slabs 737 570 29.2% 1 307 1 054 24.0%
Billets 820 656 25.0% 1 475 1 191 23.8%
Other steel products
(1) 114 128 -10.8% 241 327 -26.3%
Finished products(2) 1,251 1,353 -7.6% 2 604 2 780 -6.3%
Construction products 783 839 -6.6% 1 621 1 593 1.8%
Railway products 311 358 -13.0% 669 710 -5.8%
Flat products 0 0 n/a 0 189 -100.0%
Other steel products 157 157 -0.2% 314 288 9.0%
Steel products,
inter-segment sales 3 40 -91.7% 44 301 -85.4%
Third-party steel
products, external
sales 197 175 12.6% 372 376 -1.1%
Iron ore products,
external sales 446 355 25.6% 801 699 14.6%
Pellets 446 355 25.6% 801 699 14.6%
Sales of vanadium in
slag 1,996 765 n/a 2 761 2 836 -2.6%
Sales of vanadium final
products (3) 2,450 3,168 -22.6% 5 618 5 784 -2.9%
------------------------ -------- ---------- ------------------------- ------- ------- -------------------------
Note. Numbers in this table and the tables below may not add to
totals due to rounding.
(1) Includes tonnes of pig iron
(2) EVRAZ Palini e Bertoli was sold in Q4 2019
(3) In tonnes of pure vanadium
In Q2 2020, external sales of steel products increased by 7.9%
QoQ. Sales of semi-finished products climbed by 23.4% QoQ, due to a
change in the product mix to higher slab and billets sales volumes
and a decrease in the volumes of finished products due to market
conditions during the COVID-19 pandemic.
Sales of finished products dropped by 7.6% QoQ due worsening
market conditions during the pandemic as well as lower production
volumes amid scheduled capital repairs at EVRAZ ZSMK and EVRAZ
NTMK.
Sales of iron ore products surged by 25.6% QoQ amid higher
shipments to the domestic market in Q2 2020.
Sales of vanadium products fell by 22.6% QoQ mainly due to lower
steel utilisation rates as well as general decrease of vanadium
demand following COVID 19 restrictions. The regional sales and
product mix was changed to serve the more active Chinese oxide
market during Q2 2020.
Cash cost, US$/t Q2 Q1 Q2 2020 / Q1 2020, change H1 H1 H1 2020 / H1 2019, change
2020 2020 2020 2019
-------------------------- ------ ------ -------------------------- ------- ------- --------------------------
Slab cash cost vertically
integrated 198 223 -11% 210 230 -9%
Iron ore products (Fe
62%) 38 38 0% 38 38 0%
-------------------------- ------ ------ -------------------------- ------- ------- --------------------------
Average selling prices
US$/tonne (exworks) Q2 Q1 H1 H1
2020 2020 2020 2019
------------------------------------------------------------------------------ -------- -------- -------- --------
Coke 148 167 159 233
Steel products 401 477 438 494
Semi-finished products(1) 296 346 319 387
Construction products 441 505 474 544
Railway products 812 925 873 753
Other steel products 490 509 500 596
Pellets 47 54 49 77
Metal Bulletin Ferro-Vanadium basis 78% min, free DDP, consumer plant, 1st
grade Western Europe(2) 24 . 94 26 . 54 25 . 74 56 . 35
Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid(2) 23 . 28 27 . 18 25 . 23 67 . 87
------------------------------------------------------------------------------ -------- -------- -------- --------
(1) Includes prices for pig iron
(2) US$/kgV
During Q3 2020, pig iron production volumes are expected to
decrease following ramp-up of blast furnace no.6, which will
replace blast furnace no.5 at EVRAZ NTMK in July-August.
Iron ore pellets production volumes are expected to remain flat,
while sinter production is expected to decrease due to capital
repairs at EVRAZ KGOK's sinter plant in July - September 2020.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes
Product, '000 tonnes Q2 Q1 2020 Q2 2020/ H1 2020 H1 H1 2020/ H1 2019, change
2020 Q1 2020, change 2019
---------------------------------- ------ -------- ----------------- -------- ------ -------------------------
Crude steel 385 438 -12.1% 823 994 -17.2%
EVRAZ US mills 210 251 -16.3% 461 486 -5.1%
EVRAZ Canadian mills 175 188 -6.9% 363 508 -28.5%
Total steel products production,
net of re-rolled volume (1) 461 486 -5.1% 947 1 163 -18.6%
EVRAZ US mills 300 336 -10.7% 636 735 -13.5%
EVRAZ Canadian mills 161 150 7.3% 311 428 -27.3%
Sales of steel products 457 517 -10.9% 978 1 158 -15.5%
Semi-finished products (1) 54 90 -39.8% 144 130 10.8%
Construction products 68 66 2.5% 133 136 -2.2%
Railway products (1, 2) 107 106 1.7% 213 223 -4.5%
Flat-rolled products (1) 69 100 -31.1% 169 282 -40.1%
Tubular products (1) 163 156 4.5% 319 387 -17.6%
---------------------------------- ------ -------- ----------------- -------- ------ -------------------------
(1) The Q1 20 20 data have been adjusted
(2) The H 1 20 19 data have been adjusted
In Q2 2020, crude steel production was 1 2 . 1 % lower QoQ,
mainly attributable to falling demand across North American steel
markets amid the COVID-19 pandemic and uncertainty driven by oil
prices turmoil. In addition, production was affected by the
shutdown of Regina Steel, which extended into early Q2 2020 with
the advancement of a planned maintenance outage following the March
2020 cyber-attack.
Total output of steel products decreased by 5.1%, mainly driven
by reduced demand for flat-rolled products from distributors
adjusting to swift market changes brought on by the pandemic during
the period and rapid deterioration of the energy markets in North
America halting OCTG demand.
Canadian mills increased production by 7.3% QoQ due to higher
large diameter (LD) and line pipe (LP) production following
downtime in March triggered by the cyberattack and improved
operational performance. This was partially offset by lower
Canadian OCTG production due to the fall in market demand in wake
of sharply reduced oil prices. Lower rig counts in Western Canada
resulted in sharp reductions in demand, and the idling of pipe
mills in Calgary, Red Deer and Camrose in Q2 2020.
US mills decreased production by 10.7% QoQ due to declined
flat-rolled orders at EVRAZ Portland and OCTG orders at Pueblo
Seamless. Similar to the Canadian OCTG mills, Pueblo Seamless
volumes were also affected by oil price reductions, which resulted
in the idling of the Seamless mill in early Q2 2020.
Semi-finished product sales fell by 39.8% following successful
fulfilment of a contract with a key customer.
Flat-rolled product sales dropped by 31.1% QoQ as a result of
weakening market demand.
Sales volumes of tubular products climbed by 4.5% QoQ, driven by
the Canadian LD and LP production increases during the period
relative to Q1 2020. Railway and construction products demand
remained stable QoQ.
Prices for construction products decreased 4.7% QoQ, driven by
lower scrap costs. Prices for tubular products rose driven
primarily by a mix of orders, while prices for flat-rolled products
remained unchanged on average.
Average selling prices
US$/tonne (ex-works) Q2 Q1 H1 H1
2020 2020 2020 2019
------------------------ ------ ------ ------ ------
Construction products* 681 715 698 808
Flat-rolled products* 891 904 899 999
Tubular products* 1 479 1 350 1 416 1 353
------------------------ ------ ------ ------ ------
* The Q1 2020 data have been adjusted
In Q3 2020, significant uncertainty remains around production
and sales volumes for all product groups due to continued turmoil
in the oil & gas markets and the slow economic recovery during
the resurgent COVID-19 pandemic, leaving North American customers
cautious in purchasing strategies.
COAL SEGMENT
Production volumes
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 2020 H1 H1 2020/ H1 2019, change
2020 2020 2019
----------------------------- ------ ------ ------------------------- -------- ------- -------------------------
Raw coking coal (mined) 4,165 5,692 -26.8% 9,857 13,840 -28.8%
Yuzhkuzbassugol 2,053 2,704 -24.1% 4, 757 6,072 -21.7%
Raspadskaya 2,112 2,952 -28.5% 5,064 7,147 -29.1%
Mezhegeyugol 0 36 -100.0% 36 621 -94.2%
Coking coal concentrate
(production) 3,324 3,261 1.9% 6,585 7,198 -8.5%
Produced at Yuzhkuzbassugol
coal
washing plants 1,328 1,411 -5.9% 2,739 3,270 -16.2%
Produced at the Raspadskaya
coal
washing plant 1,996 1,850 7.9% 3,846 3,928 -2.1%
----------------------------- ------ ------ ------------------------- -------- ------- -------------------------
In Q2 2020, overall raw coking coal output fell by 26.8% QoQ,
primarily due to weaker market demand as well as lower production
at the Razrez Raspadsky open pit and Mezhegeyugol, following the
decision to suspend output due to unfavourable market conditions as
well as the completion of a mining at longwall at the Raspadskaya
mine.
Production at Yuzhkuzbassugol went down by 28.5% QoQ mainly due
to the longwall move at the Alardinskaya mine.
Output of coking coal concentrate rose by 1.9% QoQ as
Raspadskaya coal washing plant processed additional volumes of raw
coal from the stockpiles in order to offset lower production at
Yuzhkuzbassugol coal washing plants.
Sales volumes
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 H1 H1 2020/ H1 2019, change
2020 2020 2020 2019
--------------------------- ------ ------ ------------------------- ------ ------ -------------------------
External sales 2,800 3,278 -14.6% 6,079 5,586 8.8%
Raw coking coal 492 707 -30.4% 1,198 944 26.9%
Coking coal concentrate 2,309 2,572 -10.2% 4,880 4,642 5.1%
Intersegment sales 1,880 1,624 15.8% 3,503 3,169 10.5%
Raw coking coal 712 492 44.9% 1,204 952 26.5%
Coking coal concentrate 1,167 1,132 3.1% 2,300 2,217 3.7%
--------------------------- ------ ------ ------------------------- ------ ------ -------------------------
In Q2 2020, external sales volumes of coking coal products
declined by 14.6% QoQ. Raw coking coal sales volumes fell by 30.4%
QoQ, following lower shipments to Europe due to unfavourable market
conditions. Coking coal concentrate sales volumes decreased by
10.2% QoQ, attributable to lower shipments and partly offset by
stable demand in Russia and on the Chinese spot market.
Cash cost, US$/t Q2 Q1 Q1 2020 / Q4 2019, change H1 H1 Q1 2020 / Q1 2019, change
2020 2020 2020 2019
------------------------- ------ ------ -------------------------- ------ ------ --------------------------
Coking coal concentrate 34 33 3% 34 34 0%
------------------------- ------ ------ -------------------------- ------ ------ --------------------------
Average selling prices
Q2 Q1 H1 H1
US$/tonne (ex works) 2020 2020 2020 2019
------------------------- ------ ------ ------ ------
Raw coking coal 39 33 36 59
Coking coal concentrate 65 70 67 110
------------------------- ------ ------ ------ ------
In Q2 2020, coking coal selling prices moved in line with global
benchmarks.
In Q3 2020, raw coal production is expected to increase QoQ due
to the completion of the longwalls move at the Esaulskaya,
Alardinskaya, Osinnikovskaya and Uskovskaya mines in Q2 2020.
Notes:
Semi-finished products include slabs, billets, pipe blanks and
other semi-finished products.
Construction products include beams, channels, angles, rebars,
wire rods, wire and other construction products.
Railway products include rails, wheels, tyres and other railway
products.
Flat-rolled products include commodity plate, specialty plate
and other flat products.
Tubular products include large-diameter line pipes, ERW pipes
and casings, seamless pipes and other tubular products.
Other steel products include rounds, grinding balls, mine
uprights, strips, etc.
###
For further information:
Media Relations:
+7 495 937 6871
media@evraz.com
Investor Relations:
+7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium
business with operations in Russia, Kazakhstan, the US, Canada and
Czech Republic. EVRAZ is among the top steel producers in the world
based on crude steel production of 14 million tonnes in 2019. A
significant portion of the Group's internal consumption of iron ore
and coking coal is covered by its mining operations. The Group's
consolidated revenues for the year ended 31 December 2019 were
US$11,905 million, and consolidated EBITDA amounted to US$2,601
million.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTPPUWPMUPUGBB
(END) Dow Jones Newswires
July 30, 2020 02:00 ET (06:00 GMT)
Evraz (LSE:EVR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Apr 2023 to Apr 2024
