TIDMEVR
RNS Number : 3468N
Evraz Plc
29 January 2021
This announcement replaces the RNS announcement number 2820N
released at 07:00 UK time today,
29 January 2021.
The figures in the section " Q4 2020 vs Q3 2020 HIGHLIGHTS" in
the "Coking coal concentrate production" bullet point on page 1 of
the pdf version should read as follows:
-- Coking coal concentrate production grew by 5.6% QoQ, mainly
due to increased coal mining volumes
29 January 2021 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group")
today released its trading update for the fourth quarter and full
year 2020.
Q4 2020 vs Q3 2020 HIGHLIGHTS
-- In Q4 2020, EVRAZ' consolidated crude steel output rose by
7.4% QoQ, mainly due to higher production volumes at EVRAZ NTMK
following the completion of scheduled capital repairs during Q3
2020, as well as improved production volumes at EVRAZ North
America, which grew by 26.6% QoQ.
-- Total sales of steel products increased by 12.0% QoQ, driven
primarily by sales of semi-finished products, which grew by 30.4%.
This, in turn, was mainly the result of a recovery in export
markets and weaker demand for finished construction products in
Russia due to seasonal factors.
-- Total raw coking coal production rose by 26.1% QoQ, driven by
the relaunch of production at the Razrez Raspadsky open pit as well
as better production volumes at the Raspadskaya mine.
-- Coking coal concentrate production grew by 5.6% QoQ, mainly
due to increased coal mining volumes.
-- External sales volumes of coking coal products fell by 19.2%
QoQ, due to a deficit of GZh grade coal amid longwall move at the
Uskovskaya mine as well as elevated levels of Q2-Q3 2020 sales amid
utilisation of stockpiles.
-- External sales of iron ore products decreased by 8.4% QoQ,
amid higher consumption of pellets by EVRAZ NTMK following the
successful launch of blast furnace no. 6 in Q3 2020.
-- Sales of vanadium products rose by 51.4% QoQ, mainly due to
higher steel utilisation rates, following increased FeV demand also
from the automotive industry as well as some increase of oxide and
FeV sales to China during Q4 2020.
FY2020 vs FY2019 HIGHLIGHTS
-- In 2020, EVRAZ' consolidated crude steel production remained
almost flat YoY (-1.3%), despite challenges created by the COVID-19
pandemic. In addition, turbulence in the oil and gas markets led to
lower demand, resulting in decrease of production volumes at EVRAZ
North America.
-- Sales volumes of semi-finished products increased by 6.1%
YoY, primarily due to a change in the product mix in favour of
higher slab and billets sales to export destinations following a
decrease in demand in Russia during the COVID-19 pandemic.
-- Sales of finished products declined by 10.1%, mainly
attributable to the sale of Palini e Bertoli in 2019, as well as
lower tubular and flat-rolled products sales at EVRAZ North
America, amid unfavourable market conditions caused by the COVID-19
pandemic.
-- Production of raw coking coal fell by 21.0% YoY, due to a
halt in mining at the Razrez Raspadsky open pit from May to
September 2020, the idling of the Mezhegeyugol mine from March 2020
and lower production volumes at the Raspadskaya mine due to
challenging geological conditions.
-- External iron ore product sales rose by 52.7% YoY, primarily
as a result of higher shipments to external markets amid lower
consumption of pellets by EVRAZ NTMK during a major overhaul of
blast furnace no.6, which was successfully launched in Q3 2020.
-- Sales of final vanadium products declined by 2.2% YoY, mainly
due to reduced global FeV demand, following the imposition of
COVID-19 restrictions (which were partially compensated by changing
the regional sales and product mix to serve the more active Chinese
oxide market during 2020).
Product, '000 tonnes Q4 Q3 Q4 2020/ Q3 2020, change 12m 12m 12m 2020/ 12m 2019, change
2020 2020 2020 2019
-------------------------- ------- ------- ------------------------- ------- ------- ---------------------------
Total crude steel
production 3,467 3,227 7.4% 13,630 13,814 -1.3%
Russia 3,044 2,893 5.2% 12,050 11,953 0.8%
North America 423 334 26.6% 1,580 1,861 -15.1%
Total raw coking coal
mined 6,021 4,775 26.1% 20,653 26,140 -21.0%
Total coking coal
concentrate
production 4,088 3,873 5.6% 15,528 15,922 -2.5%
Iron ore products
production 3,642 3,508 3.8% 14,205 13,765 3.2%
Total sales of steel
products 3,410 3,046 12.0% 13,062 13,479 -3.1%
Semi-finished products 1,707 1,309 30.4% 6,183 5,828 6.1%
Finished products 1,703 1,737 -1.9% 6,879 7,651 -10.1%
Total sales of
third-party steel
products 209 267 -21.7% 848 801 5.9%
Sales of coking coal
products 2,797 3,460 -19.2% 12,336 11,053 11.6%
Sales of iron ore
products 445 486 -8.4% 1,732 1,134 52.7%
Sales of vanadium in slag 1,763 1,605 9.8% 6,129 6,451 -5.0%
Sales of vanadium final
products (1) 4,207 2,779 51.4% 12,604 12,883 -2.2%
-------------------------- ------- ------- ------------------------- ------- ------- ---------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
(1) In tonnes of pure vanadium
STEEL SEGMENT
Total production volumes
Q4 2020/ Q3 2020, 12m 2020/ 12m 2019,
Product, '000 tonnes Q4 2020 Q3 2020 change 12m 2020 12m 2019 change
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
Pig iron production 2,851 2,686 6.1% 11,157 11,016 1.3%
EVRAZ ZSMK 1,564 1,556 0.5% 6,208 6,072 2.2%
EVRAZ NTMK 1,287 1,130 13.9% 4,949 4,944 0.1%
Crude steel production 3,044 2,893 5.2% 12,050 11,953 0.8%
EVRAZ ZSMK 1,933 1,880 2.8% 7,671 7,659 0.2%
EVRAZ NTMK 1,111 1,013 9.7% 4,379 4,294 2.0%
Total steel products
production, net of
re-rolled volume(1) 2,876 2,600 10.6% 11,082 11,018 0.6%
EVRAZ ZSMK 1,758 1,608 9.3% 6,766 6,817 -0.7%
EVRAZ NTMK 1,043 930 12.2% 3,999 3,590 11.4%
EVRAZ Caspian Steel 75 62 21.0% 317 283 12.0%
Iron ore products
production 3,642 3,508 3.8% 14,205 13,765 3.2%
Pellets (EVRAZ KGOK) 1,660 1,607 3.3% 6,548 6,203 5.6%
Sinter (EVRAZ KGOK) 928 833 11.4% 3,582 3,511 2.0%
Concentrate saleable
(EVRAZ KGOK, EVRAZ
ZSMK) 1,054 1,068 -1.3% 4,075 4,051 0.6%
Coking coal concentrate
production 473 475 -0.4% 1,930 1,947 -0.9%
From own raw coal(2) 371 317 17.0% 1,518 1,335 13.7%
From third-party raw
coal 102 158 -35.4% 412 612 -32.7%
Gross vanadium slag
production(3) 5,037 4,419 14.0% 19,533 18,380 6.3%
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
(1) Including EVRAZ Palini e Bertoli
(2) From Coal segment
(3) In tonnes of pure vanadium
In Q4 2020, pig iron production increased by 6.1% QoQ, as the
capital repair of blast furnace no. 6 was completed in Q3 2020 at
EVRAZ NTMK. In FY2020, EVRAZ` pig iron production remained almost
flat YoY.
Crude steel production volumes rose by 5.2% QoQ, as scheduled
capital repairs during Q3 2020 were completed. In FY2020, the
production of crude steel remained almost flat YoY, which was in
line with pig iron production volumes.
The total output of steel products increase by 10.6% QoQ,
following the completion of scheduled capital repairs at EVRAZ ZSMK
in Q3 2020 and a change in the product mix at EVRAZ NTMK. EVRAZ
Caspian Steel increased production by 21.0% QoQ, due to higher
market demand. In FY2020, the total output of steel products
remained flat YoY. This was mainly due to a 11.4% YoY increase in
production at EVRAZ NTMK, amid higher volumes of semi-finished and
construction products, partly offset by the sale of Palini e
Bertoli.
Output of iron ore products went up by 3.8% QoQ, as scheduled
capital repairs at EVRAZ KGOK were completed in Q3 2020. In FY2020,
output of iron ore products rose by 3.2% YoY, following higher
consumption of pellets, lower unscheduled downtime and increased
operational efficiency at EVRAZ KGOK.
Consolidated output of vanadium slag increased by 14.0% QoQ, due
to higher volumes of pig iron duplex processing. In FY2020, output
of vanadium slag climbed by 6.3% YoY, due to the higher vanadium
content in pig iron.
Total sales volumes
Product, '000 to
nnes Q4 2020 Q3 Q4 2020/ Q3 2020, change 12m 12m 12m 2020/ 12m 2019, change
2020 2020 2019
------------------ -------- ---------- ------------------------- --------- --------- ---------------------------
Coke 74 130 -43.1% 390 361 8.0%
Steel products,
external sales 3,046 2,703 12.7% 11,377 11,273 0.9%
Semi-finished
products 1,707 1,309 30.4% 6,039 5,636 7.2%
Slabs 849 436 94.7% 2,592 2,443 6.1%
Billets 722 735 -1.8% 2,933 2,519 16.4%
Other steel
products(1) 136 138 -1.4% 514 674 -23.7%
Finished products 1,339 1,394 -3.9% 5,338 5,636 -5.3%
Construction
products 845 925 -8.6% 3,392 3,331 1.8%
Railway
products 320 310 3.2% 1,299 1,393 -6.7%
Flat products 0 0 n/a 0 321 -100.0%
Other steel
products 174 159 9.4% 647 591 9.5%
Steel products,
inter-segment
sales 21 3 600.0% 67 318 -78.9%
Third-party steel
products,
external sales 209 267 -21.7% 848 801 5.9%
Iron ore
products,
external sales 445 486 -8.4% 1,732 1,134 52.7%
Pellets 445 486 -8.4% 1,732 1,134 52.7%
Sales of vanadium
in slag 1,763 1,605 9.8% 6,129 6,451 -5.0%
Sales of vanadium
final
products(2) 4,207 2,779 51.4% 12,604 12,883 -2.2%
------------------ -------- ---------- ------------------------- --------- --------- ---------------------------
Note. Numbers in this table and the tables below may not add to
totals due to rounding.
(1) Includes tonnes of pig iron
(2) In tonnes of pure vanadium
In Q4 2020, external sales of steel products rose by 12.7% QoQ.
Sales of semi-finished products surged by 30.4% QoQ, driven by a
recovery in export markets and weaker demand for finished
construction products in Russia due to seasonal factors. This
resulted in a change in the sales mix in favour of semi-finished
products.
In FY 2020, sales volumes of semi-finished products were up 7.2%
YoY, primarily due to a change in the product mix in favour of
higher slab and billets sales to export destinations following a
decrease in demand in Russia amid the COVID-19 pandemic.
Sales of finished products dropped by 3.9% QoQ, due to a change
in the product mix. In FY2020, sales volumes of finished products
declined by 5.3% YoY, mainly due to the sale of Palini e Bertoli in
2019 and lower demand for railway products on the domestic
market.
Sales of iron ore products fell by 8.4% QoQ, amid higher
consumption of pellets by EVRAZ NTMK, following the successful
launch of blast furnace no. 6 in Q3 2020. In FY2020, primarily as a
result of higher shipments to external markets amid lower
consumption of pellets by EVRAZ NTMK at the time of a major
overhaul of blast furnace no.6 which was successfully launched in
Q3 2020.
Sales of vanadium products rose by 51.4% QoQ, mainly due to
higher steel utilisation rates, following increased FeV demand also
from the automotive industry as well as some increase of oxide and
FeV sales to China during Q4. In FY2020, sales of final vanadium
products declined by 2.2% YoY, mainly due to reduced global FeV
demand, following the imposition of COVID-19 restrictions.
Cash cost, US$/t Q4 Q3 Q4 2020 / Q3 2020, change 12m 12m 12m 2020 / 12m 2019, change
2020 2020 2020 2019
------------------------ ------ ------ -------------------------- ------- ------- ----------------------------
Slab cash cost
vertically integrated 224 200 12.0% 213 236 -9.7%
Iron ore products (Fe
62%) 37 35 5.7% 36 41 -12.2%
------------------------ ------ ------ -------------------------- ------- ------- ----------------------------
Average selling prices
US$/tonne (ex-works) Q4 Q3 12m 12m
2020 2020 2020 2019
-------------------------------------------------------------------------------------- ------ ------ ------ ------
Coke 177 135 155 217
Steel products 455 435 442 483
Semi-finished products(1) 374 315 333 361
Construction products 494 473 479 534
Railway products 732 796 818 823
Other steel products 516 477 498 576
Pellets 78 61 60 70
Metal Bulletin Ferro-Vanadium basis 78% min, free DDP, consumer plant, 1st grade
Western Europe(2) 24.38 24.23 25.02 41.62
Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid(2) 23.11 21.81 23.85 49.18
-------------------------------------------------------------------------------------- ------ ------ ------ ------
(1) Includes prices for pig iron
(2) US$/kgV
In Q1 2021, pig iron production volumes are expected to decrease
slightly as a result of fewer operational days in Q1 2021. Iron ore
pellets and sinter production volumes are expected to remain
flat.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes
Product, '000 tonnes Q4 Q3 2020 Q4 2020/ 12m 2020 12m 12m 2020/ 12m 2019, change
2020 Q3 2020, change 2019
--------------------------------- ------ -------- ----------------- --------- ------ ---------------------------
Crude steel 423 334 26.6% 1,580 1,861 -15.1%
EVRAZ US mills 196 181 8.3% 838 925 -9.4%
EVRAZ Canadian mills 227 153 48.4% 743 936 -20.6%
Total steel products production,
net of re-rolled volume 377 377 0.0% 1,668 2,212 -24.6%
EVRAZ US mills 270 257 4.8% 1,125 1,418 -20.7%
EVRAZ Canadian mills 107 119 -10.4% 542 794 -31.7%
Sales of steel products 364 343 6.2% 1,685 2,207 -23.7%
Semi-finished products 0 0 n/a 144 192 -25.0%
Construction products 68 61 11.8% 262 256 2.3%
Railway products 99 91 8.8% 404 441 -8.4%
Flat-rolled products 113 100 13.0% 382 523 -27.0%
Tubular products 84 91 -7.7% 494 795 -37.9%
--------------------------------- ------ -------- ----------------- --------- ------ ---------------------------
In Q4 2020, crude steel production was 26.6% higher QoQ,
following increased demand for flat-rolled and construction
products driven by a market recovery. In FY2020, crude steel
production was down 15.1% YoY, mainly due to market turbulence amid
the COVID-19 pandemic and energy market uncertainty, which led to
falling demand and lower production volumes.
Semi-finished products sales fell by 25.0% YoY, following the
fulfilment of a contract with a key customer.
Sales of construction products and railway products went up by
11.8% and 8.8% respectively QoQ, due to improved market conditions
and additional steel availability. Sales of railway products in FY
2020 decreased by 8.4% YoY, primarily due to reduced demand driven
by the COVID-19 pandemic.
Flat-rolled product sales rose by 13.0% QoQ, as a result of
improving market conditions. In FY2020, sales of flat-rolled
products dropped by 27.0% YoY, as market demand contracted amid the
COVID-19 pandemic.
Tubular products sales declined by 7.7% QoQ, and 37.9% YoY, as
turbulence in the oil and gas markets led to falling demand,
resulting in the idling of the Group's OCTG mills in Canada and the
US. At the same time, line pipe production continued to be stable
during the period as both large and small diameter mills were
producing to current orders.
Average selling prices
US$/tonne (ex-works) Q4 Q3 12m 12m
2020 2020 2020 2019
----------------------- ------ ------ ------ ------
Construction products 677 649 664 745
Flat-rolled products 728 719 754 911
Tubular products 1 327 1 401 1 349 1 340
----------------------- ------ ------ ------ ------
In Q1 2021, production and sales volumes for construction,
flat-rolled and rail products are expected to continue to improve
in line with market recovery. For tubular products, the uncertainty
in energy markets remains a significant factor impacting North
American customers, however, the OCTG market has started
demonstrating early signs of returning demand.
COAL SEGMENT
Production volumes
Product, '000 tonnes Q4 Q3 Q4 2020/ Q3 2020, change 12m 2020 12m 12m 2020/ 12m 2019, change
2020 2020 2019
-------------------------- ------ ------ ------------------------- --------- ------- ---------------------------
Raw coking coal (mined) 6,021 4,775 26.1% 20,653 26,140 -21.0%
Yuzhkuzbassugol 3,257 3,341 -2.5% 11,355 12,180 -6.8%
Raspadskaya 2,764 1,434 92.7% 9,262 12,824 -27.8%
Mezhegeyugol 0 0 n/a 36 1,136 -96.8%
Coking coal concentrate
(production) 3,615 3,398 6.4% 13,598 13,975 -2.7%
Produced at
Yuzhkuzbassugol coal
washing plants 1,804 1,506 19.8% 6,049 6,247 -3.2%
Produced at the
Raspadskaya coal
washing plant 1,811 1,892 -4.3% 7,549 7,728 -2.3%
-------------------------- ------ ------ ------------------------- --------- ------- ---------------------------
In Q4 2020, overall raw coking coal output grew by 26.1% QoQ,
driven by re-launched production at the Razrez Raspadsky open pit
as well as better production volumes at the Raspadskaya mine. In
FY2020, production of raw coking coal went down by 21.0% YoY, due
to a halt in mining at the Razrez Raspadsky open pit from May to
September 2020, the idling of Mezhegeyugol mine starting from March
2020 and lower production volumes at the Raspadskaya mine amid
challenging geological conditions.
Output of coking coal concentrate rose by 6.4% QoQ, mainly due
to increased coal mining volumes.
Sales volumes
Product, '000
tonnes Q4 Q3 Q4 2020/ Q3 2020, change 12m 12m 12m 2020/ 12m 2019, change
2020 2020 2020 2019
---------------- ------------- ------------- ------------------------- ------- ------- ---------------------------
External sales 2,797 3,460 -19.2% 12,336 11,053 11.6%
Raw coking
coal* 250 822 -69.6% 2,271 1,929 17.7%
Coking coal
concentrate* 2,547 2,638 -3.4% 10,065 9,124 10.3%
Intersegment
sales 1,663 1,824 -8.8% 6,990 6,569 6.4%
Raw coking
coal 496 622 -20.2% 2,323 2,044 13.6%
Coking coal
concentrate 1,166 1,202 -2.9% 4,667 4,525 3.1%
---------------- ------------- ------------- ------------------------- ------- ------- ---------------------------
*The 12m 2019 data have been adjusted
External sales volumes of coking coal products fell by 19.2%
QoQ, due to a deficit of GZh grade coal amid longwall move at the
Uskovskaya mine as well as elevated levels of Q2-Q3 2020 sales amid
utilisation of stockpiles. In FY2020, external sales volumes of
coking coal products increased by 11.6% YoY, following higher
shipments of raw coal from the Uskovskaya mine. Coking coal
concentrate sales volumes rose by 10.3% YoY, due to higher
shipments to Southeast Asian countries and Russia, amid the greater
utilisation of accumulated stockpiles during Q2-Q3 2020.
Cash cost, US$/t Q4 Q3 Q4 2020 / Q3 2020, change 12m 12m 12m 2020 / 12m 2019, change
2020 2020 2020 2019
------------------------- ------ ------ -------------------------- ------ ------ ----------------------------
Coking coal concentrate 26 31 -16.1% 31 35 -11.4%
------------------------- ------ ------ -------------------------- ------ ------ ----------------------------
Average selling prices
Q4 Q3 12m 12m
US$/tonne (ex-works) 2020 2020 2020 2019
------------------------- ---------------- ---------------- ------ ------
Raw coking coal 34 30 34 49
Coking coal concentrate 56 57 62 99
------------------------- ---------------- ---------------- ------ ------
In Q1 2021, raw coal production is expected to increase QoQ,
amid the completion of the longwall move at the Uskovskaya mine, a
return to planned capacity after the resumption of production at
the Razrez Raspadsky open pit, and favourable mining and geological
conditions at the Esaulskaya mine. This will be partly offset by
unfavourable mining and geological conditions at the Alardinskaya
and Raspadskaya mines.
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.
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