EVRAZ plc and Evraz Group SA released its operational results for the fourth quarter of 2011 and full year 2011.
FY 2011 highlights
1. Crude steel production grew by 3% compared to FY2010 mainly due to an increase in volumes in the Czech Republic, resulting from the resolution of a pricing dispute with a supplier of hot metal while other major steelmaking assets continued to operate at full capacity.
2. Steel product mix shifted further in favour of finished goods.
3. Coking coal production decreased by 16% due to several longwall repositionings and temporary stoppages of some mines for additional implementation of safety equipment and procedures.
4. Prices for steel products and coking coal improved compared to the previous year.
Q4 2011 highlights
1. Crude steel volumes increased by 3%QoQ due to completion of scheduled maintenance in Q3 on the back of full utilization of major steelmaking assets.
2. Share of semi-finished steel increased compared to Q3 due to seasonally lower demand for finished steel in Russia.
3. Coking coal production gained momentum in Q4 2011 after most of the issues negatively affecting performance of the first three quarters of 2011 were resolved.
4. Prices for steel products and coking coal contracted compared to Q3 reflecting negative seasonality and market volatility.
Steel
| Steel products | 2011 | 2010 | Change | Q4'11 | Q3'11 | Change |
| Coke (saleable) | 1,348 | 1.823 | (26.1)% | 195 | 306 | (36.3)% |
| Pig iron | 11,858 | 11,918 | (0.5)% | 2,998 | 2,865 | 4.7% |
| Pig iron (saleable) | 131 | 145 | (9.8)% | 24 | 29 | (18.0)% |
| Crude steel | |16,773 | 16,291 | 3.0% | 4,136 | 4,024 | 2.8% |
| Steel products | 15,234 | 14,698 | 3.6% | 3,783 | 3,697 | 2.3% |
| Semi-finished products | 3,544 | 3,767 | (5.9)% | 923 | 793 | 16.5% |
| Construction products | 5,257 | 4,939 | 6.4% | 1,333 | 1,351 | (1.3)% |
| Railway products | 2,055 | 1,889 | 8.8% | 485 | 517 | (6.3)% |
| Flat-rolled products | 2,707 | 2,534 | 6.8% | 648 | 609 | 6.4% |
| Tubular products | 848 | 903 | (6.1)% | 194 | 238 | (18.4)% |
| Other steel products | 823 | 667 | 23.5% | 199 | 188 | 5.5% |
In ‘000 tonnes
In 2011, EVRAZ overall production of crude steel increased by 3% against 2010 and QoQ. The trend of redistribution of available steel volumes towards higher value added finished products has become even more evident as domestic markets for EVRAZ’s plants in Russia, Ukraine, North America and South Africa, respectively, showed signs of recovery in 2011.
The Q4 2011 pricing was, as usual, affected by seasonal factors, as well as global growth concerns.
