EVRAZ Q3 2021 Trading Update

EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today has released its trading update for the third quarter of 2021.

Q3 2021 vs Q2 2021 HIGHLIGHTS

In Q3 2021, EVRAZ’ consolidated crude steel output edged up by 1.0% QoQ, mainly due to larger production volumes at EVRAZ North America. Production at the Group’s Russian operations decreased slightly QoQ amid scheduled capital repairs.

Total sales of steel products decreased by 8.2% QoQ, primarily due to slowdown of Russian construction products market accompanied by lower sales of railway and semi-finished products because of logistics restrictions on the route and detentions in ports amid inclement weather. This was partly offset by better performance QoQ of EVRAZ North America.

Total raw coking coal production fell by 2.3% QoQ following scheduled longwall movements at the Osinnikovskaya, Yerunakovskaya-8, Uskovskaya and Raspadskaya mines. In addition, the Raspadskaya-Koksovaya mine had to temporarily slow its operations because of difficult geological conditions. Output from the remaining assets increased during the quarter.

Total coking coal concentrate production, including both the Steel and Coal segments, decreased by 1.8% QoQ, mainly because of reduction of coke production at EVRAZ ZSMK. The Coal segment’s standalone coal concentrate production remained at the level of Q2 2021.

External sales of iron ore products decreased by 10.1% QoQ, driven by the partial shift of sales to Q4 2021 amid temporary logistics restrictions westwards due to vessel delays.

External sales of vanadium products fell by 11.8% QoQ, mainly because of reduced global demand from the automotive sector amid the semiconductor shortage and slowdowns in the Russian oil, gas and rail sectors. In addition, some global steel mills scheduled major maintenance during the summer months.

Product, ‘000 tonnes	Q3 2021	Q2 2021	Q3 2021/ Q2 2021, change	9m 2021	9m 2010	9m 2021/ 9m 2010, change
Total crude steel production	3,403	3,368	1.00%	10,185	10,163	0.20%
Russia	2,912	2,953	-1.40%	8,786	9,006	-2.40%
North America	491	415	18.30%	1,399	1,157	20.90%
Total raw coking coal mined	4,983	5,098	-2.30%	16,573	14,632	13.30%
Total coking coal concentrate production	3,746	3,814	-1.80%	11,796	11,440	3.10%
Iron ore products production	3,504	3,750	-6.60%	10,648	10,563	0.80%
Total sales of steel products 1	2,978	3,246	-8.20%	9,281	9,652	-3.80%
Semi-finished products	1,337	1,440	-7.20%	4,183	4,476	-6.50%
Finished products	1,641	1,806	-9.10%	5,098	5,176	-1.50%
Total sales of third-party steel products	213	217	-1.80%	564	639	-11.70%
Sales of coking coal products	2,462	2,761	-10.80%	8,047	9,539	-15.60%
Sales of iron ore products	303	337	-10.10%	951	1,287	-26.10%
Sales of vanadium in slag	1,834	1,624	12.90%	4,593	4,366	5.20%
Sales of vanadium final products 2	2,864	3,247	-11.80%	9,479	8,366	13.30%