Evraz steel output holds steady in Q1, but declines seen in Q2

Russia-focused steel producer Evraz saw stable output levels in the first quarter of 2015 but warned that production will drop over the next three months.

The company said second-quarter output in Russia, which accounts for the bulk of its operations, is expected to fall compared with the first quarter as a result of a 24-day scheduled maintenance works at Evraz NTMK's blast furnaces.

Consolidated crude steel output totalled 3.9m tonnes in the first three months of the year, up 1.4% on the preceding quarter (q/q) and 1.1% higher than same period a year ago (y/y).

Production of steel products, net of re-rolled volumes, was down 0.2% q/q and up 8.7% y/y.

Evraz said it saw a 5% q/q increase of semi-finished products for export, supported by its low-cost position an devaluation of the Russian rouble and Ukrainian hryvnia.

In the finished products category, 7% growth in railway products was offset by declines elsewhere with lower demand and increased competition for construction products in Russia and for flat-rolled products in North America.

The stock was up 3% at 197.41p in early deals on Monday.