(Alliance News) - Evraz PLC on Thursday said total steel product sales in the third-quarter fell from the prior three-month period as the steelmaker pointed to a slowdown in the Russian construction market.
For the third quarter, crude steel output was up 1.0% at 3.40 million tonnes from 3.37 million tonnes in the second quarter.
However, Evraz said total sales of steel products decreased by 8.2% in the third quarter, mainly due to slowdown of Russian construction products market. It also noted lower sales of railway and semi-finished products due to logistics restrictions on the route and detentions in ports amid inclement weather, though this was partly offset by a better performance by its North America arm.
Evraz said third-quarter coking coal production was down 1.8% at 3.75 million tonnes from 3.81 million tonnes in the second quarter due to scheduled repairs at the Abagurskaya processing plant in September. Iron ore products output slipped 6.6% to 3.5 million tonnes from 3.75 million tonnes.
Meanwhile, Evraz said external sales of vanadium products fell by 12%, 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.
The stock was down 1.7% at 626.68 pence on Thursday, among the worst performers in the FTSE 100.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Evraz (EVR)