EVRAZ grew output of coking coal concentrate

In 2016, consolidated crude steel production and steel product output, net of re-rolled volumes, decreased by 5.7% and 6.1% respectively. This was mainly due to weak tubular and rail markets in North America, lower crude steel production at EVRAZ ZSMK due to planned capital repairs at blast furnaces in 2016, and the deconsolidation of EVRAZ Highveld Steel and Vanadium in April 2015.

Changes in the steel product mix reflected market conditions. Together with increased output at EVRAZ ZSMK’s rolling mill, this resulted in higher exports of railway products .

In North America, the fall in tubular product output was due to a market slump amid low oil prices and delays in pipeline projects. The decline in railway product output was attributable to lower demand from major customers.

Production of coking coal concentrate grew by 4.9% YoY. This was due to the completion of longwall moves and more favourable geological conditions at the Erunakovskaya-8 mine, improved productivity at the Uskovskaya and Osinnikovksya mines, and higher output at Mezhegeyugol following the launch of room-and-pillar mining operations in 2016.