EVRAZ PLC — Earnings Release 2012

Jan 18, 2013

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 8627V

Evraz Plc

18 January 2013

EVRAZ Q4 2012 and FULL YEAR 2012 PRODUCTION REPORT

18 January 2013 - EVRAZ plc (LSE: EVR) today released its operational results for the fourth quarter of 2012 and full year 2012.

Q4 2012 OPERATIONAL HIGHLIGHTS and RECENT DEVELOPMENTS:

·    Consolidated crude steel production and gross output of steel products both decreased by 6% compared to Q3 2012, mainly due to a scheduled maintenance at EVRAZ ZSMK. The temporary suspension of work at EVRAZ Vitkovice's steel shop in the Czech Republic also contributed to the decrease in crude steel output

·    Consolidated production of finished steel goods was largely flat quarter-on-quarter, whilst the proportion of finished steel products in EVRAZ's total output increased to 80% in Q4 2012 compared with 73% in Q3 2012

·    Consolidated output of iron ore products remained broadly flat vs. Q3 2012 with increased output of sinter and pellets countering lower output of saleable concentrate in Russia

·    Raw coking coal production at Yuzhkuzbassugol decreased by 6% compared to Q3 2012, mostly due to a scheduled two-month longwall repositioning at the Osinnikovskaya mine

·    Production at EVRAZ ZSMK rail mill was recommenced on 15 January 2013 following the successful completion of the modernisation project

·    EVRAZ NTMK has completed the implementation of the PCI project, which is expected to reach designed technical parameters in Q1 2013

·    Production of crude steel at EVRAZ Vitkovice in the Czech Republic resumed in January 2013, while the rolling mills had been in operation in Q4 2012

FY 2012 OPERATIONAL HIGHLIGHTS:

·    Consolidated crude steel production and gross production of steel products decreased by 5% and 4% respectively vs. 2011 mainly due to a higher number of overhauls at the Russian steel mills which were mostly related to implementation of the modernisation programme, but also due to the temporary suspension of crude steel production at EVRAZ Vitkovice's steel shop in the Czech Republic to reduce slab inventory

·    In 2012, the reconstruction of the rail mills at EVRAZ NTMK and EVRAZ ZSMK was largely completed, as well as implementation of PCI at NTMK. In 2013, the periods of suspension of production due to such overhauls are expected to reduce as the current modernisation programme nears completion

·    In 2012, the share of finished steel products as a percentage of total steel products' output remained flat at 77% compared to 2011. With increased rolling capacity following the rail mill modernisation, share of finished products in 2013 is expected to grow improving the product mix

·    Production of saleable iron ore products decreased by 2% in 2012 compared to 2011 mainly due to the termination of processing of third party raw ore at certain Russian operations, which became uneconomic in the current market environment

·    Production of raw coking coal was 35% higher compared to 2011 due to more stable operation at the Yuzhkuzbassugol mines as a result of the successful implementation of the operational improvement programmes

·    Average selling prices for most key steel product groups moderately fell over the year in the challenging macroeconomic environment

STEEL

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Coke (saleable)	1,446	1,468	(1.5)%	345	366	(5.7)%
Pig iron	12,031	11,858	1.5%	3,086	3,006	2.7%
Pig iron (saleable)	263	131	101.0%	147	67	118.0%
Crude steel	15,945	16,773	(4.9)%	3,676	3,908	(5.9)%
Steel products, gross*	15,700	16,349	(4.0)%	3,682	3,902	(5.6)%
Steel products, net of re-rolled volumes	14,250	15,232	(6.4)%	3,294	3,636	(9.4)%
Semi-finished products **	3,173	3,542	(10.4)%	657	979	(32.9)%
Finished products	11,077	11,690	(5.2)%	2,637	2,656	(0.7)%
Construction products	5,207	5,257	(1.0)%	1,292	1,347	(4.1)%
Railway products	1,832	2,055	(10.8)%	380	391	(2.7)%
Flat-rolled products	2,472	2,707	(8.7)%	564	556	1.4%
Tubular products	869	848	2.6%	242	210	15.5%
Other steel products	697	823	(15.4)%	158	153	3.2%

Note. Numbers in this table and the tables below may not add to totals due to rounding. Percent changes are based on numbers prior to rounding.

* Gross volume of steel products in the tables includes those re-rolled at other EVRAZ's mills. However, such volumes are eliminated as intercompany sales for purposes of EVRAZ's consolidated operating results.

** Consolidated production volumes of semi-finished products are preliminary as intra-group re-rolling volumes are yet to be finalised 

In Q4 2012, EVRAZ's overall production of crude steel decreased by 6% compared to Q3 2012, mainly due to a scheduled maintenance of a converter and the billet caster at EVRAZ ZSMK. The temporary suspension of work at EVRAZ Vitkovice's steel shop in the Czech Republic also contributed to the decrease in crude steel output.

For the whole year, consolidated crude steel production and gross production of steel products decreased by 5% and 4% year-on-year, respectively, mainly due to a higher number of overhauls at Russian assets related to implementation of the modernisation programme, but also due to the temporary suspension of crude steel production at EVRAZ Vitkovice's steel shop in the Czech Republic to reduce slab inventory. In 2012, the modernisation of the rail mills at EVRAZ NTMK and EVRAZ ZSMK was largely completed, as well as the implementation of the PCI project at EVRAZ NTMK.

Consolidated production of finished steel goods was flat quarter-on-quarter and decreased by 5% year-on-year due to lower output of flat-products (primarily in Europe) and railway products in Russia due to the reconstruction of the railway mill at EVRAZ ZSMK.

Share of finished steel products as the percentage of total production of steel products remained unchanged in 2012 vs. 2011 - at 77% and increased to 80% in Q4 2012 from 73% in Q3 2012

RUSSIA

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Coke (saleable)	504	532	(5.4)%	117	135	(13.1)%
Pig iron	10,554	10,337	2.1%	2,702	2,695	0.2%
Pig iron (saleable)	185	65	184.9%	97	45	116.2%
Crude steel	11,675	12,125	(3.7)%	2,755	2,931	(6.0)%
Steel products, gross	10,821	11,134	(2.8)%	2,498	2,796	(10.6)%
Steel products, net of re-rolled volumes	10,592	10,942	(3.2)%	2,481	2,721	(8.8)%
Semi-finished products	4,091	4,202	(2.7)%	970	1,122	(13.5)%
Finished products	6,502	6,739	(3.5)%	1,510	1,599	(5.5)%
Construction products	4,281	4,220	1.5%	1,049	1,127	(6.9)%
Railway products	1,346	1,564	(14.0)%	258	277	(6.7)%
Flat-rolled products	334	356	(6.1)%	71	74	(4.7)%
Other steel products	540	600	(9.9)%	132	120	9.8%

In Q4 2012, pig iron production was flat quarter-on-quarter, though crude steel output decreased by 6% compared to Q3 2012 due to a scheduled maintenance of converter No 4 which lasted for 74 days and the billet caster at EVRAZ ZSMK.

In Q4 2012, production of saleable semi-finished goods, mostly slabs, fell by 14% as a result of planned maintenance works at EVRAZ ZSMK and due to lower demand in export markets.

In the reporting quarter, output of construction products decreased by 7% vs. Q3 2012 driven principally by seasonal factors.

In Q4 2012, production of railway products was 7% lower compared to Q3 2012 as a result of reduction in the output of railway wheels caused by maintenance works at the EVRAZ NTMK wheel rolling mill.

Overall, in 2012 crude steel output decreased by 4% compared to 2011 on the back of a major modernisation of an electric arc furnace at EVRAZ ZSMK coinciding with an upgrade of the rail mill. Moreover, in the course of 2012 there were a larger number of overhauls of blast furnaces and converters at both EVRAZ steel mills in Russia (EVRAZ NTMK and EVRAZ ZSMK).

In 2012, output of construction products recorded moderate growth of 2% vs. 2011 as a result of the gradual improvement of construction activity in Russia.

In 2012, production of railway products was 14% lower vs. 2011 as EVRAZ ZSMK rail mill was closed from April 2012 for the modernisation programme. Following successful completion of the modernisation project, production at the rail mill commenced on 15 January 2013.

The PCI project at EVRAZ NTMK has been completed and is expected to reach designed technical parameters in Q1 2013. As a result of implementation of the PCI project at EVRAZ NTMK, coke consumption is expected to reduce by 20% and natural gas by 50% for the additional usage of 150 kg of PCI coal per tonne of pig iron. The completion of the PCI project at EVRAZ ZSMK has been delayed until 2014 due to revisions in the project design documentation.

In Q1 2013, no major overhauls are planned at the Russian steel mills. For 2013 overall, the number of overhauls is expected to reduce as the current modernisation programme nears completion.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Coke	191	231	182	189
Pig iron	353	466	266	340
Steel products
Semi-finished products	457	529	396	443
Construction products	677	732	667	680
Railway products	891	882	911	908
Flat-rolled products	607	706	559	577
Other steel products	729	790	709	714

In 2012, average selling prices for most key steel product groups moderately fell over the year in the challenging macroeconomic environment. Meanwhile, average prices for some high value added products such as railway products enjoyed positive dynamics due to improved product mix.

UKRAINE

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Coke (saleable)	942	936	0.7%	228	231	(1.4)%
Pig iron	857	862	(0.5)%	208	227	(8.1)%
Pig iron (saleable)	79	66	18.9%	50	22	121.5%
Crude steel	820	860	(4.6)%	167	208	(19.7)%
Steel products	702	737	(4.7)%	156	162	(4.0)%
Semi-finished products	244	213	14.8%	58	49	18.5%
Finished products	458	524	(12.6)%	98	113	(13.7)%
Construction products	357	426	(16.1)%	82	88	(6.6)%
Other steel products	101	98	2.5%	16	25	(38.3)%

In Q4 2012, crude steel production decreased by 20% vs. Q3 2012 due to a scheduled maintenance in the converter shop of EVRAZ DMZ which began in mid-September and lasted until the end of October. This maintenance led to higher saleable volumes of pig iron and lower volumes of steel products.

Overall, in 2012 output of both crude steel and steel products was lower by 5% vs. 2011 due to planned maintenance works at blast furnaces, oxygen generation unit and in the converter shop.

In Q1 2013, no major overhauls are planned at the EVRAZ DMZ steel mill.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Coke	214	308	204	201
Pig iron	339	491	317	349
Steel products
Semi-finished products	523	569	470	505
Construction products	645	691	630	634
Other steel products	885	989	843	883

NORTH AMERICA

Product, '000 tonnes	2012*	2011	2012/ 2011, change	Q4 2012*	Q3 2012	Q4 2012/ Q3 2012, change
Crude steel	2,424	2,332	4.0%	588	610	(3.6)%
Steel products, net of re-rolled volumes	2,661	2,646	0.6%	675	642	5.2%
Construction products	330	302	9.4%	89	79	13.7%
Railway products	486	490	(0.8)%	122	114	7.1%
Flat-rolled products	975	1,007	(3.1)%	221	239	(7.5)%
Tubular products	869	848	2.6%	242	210	15.5%

* Q4 2012 and FY 2012 production volumes are preliminary

In Q4 2012, EVRAZ's North American steel mills continued to operate at high utilisation rates, though crude steel production decreased by 4%, output of steel products improved by 5% compared to Q3 2012, secured by higher supplies of slabs from EVRAZ NTMK.

Output of construction products increased by 14% in Q4 2012 vs. Q3 2012 as a result of healthy demand for rod & bar products. A third working shift at EVRAZ Pueblo was added to meet the increased demand for these products. The increase in output of construction products by 9% in 2012 vs. 2011 was due to a relatively low base in 2011.

In the reporting quarter, rail production increased by 7% compared to Q3 2012 after completion of the scheduled annual maintenance at the Pueblo rail mill in September 2012. Annual production of railway products in 2012 remained flat year-on-year. Meanwhile, the order book of the rail mill is full until the end of Q1 2013.

The output of flat-rolled products in Q4 2012 decreased by 8% vs. Q3 2012 primarily due to lower output of specialty plate at EVRAZ Claymont (the mill was idle during Hurricane Sandy), lower production of commodity plate resulting from planned maintenance works at EVRAZ Portland and EVRAZ Regina facilities and due to a weaker order book. This decrease was partially offset by an increase in API plate production.

In Q4 2012, production of tubular goods increased by 16% compared to Q3 2012 due to higher output of spiral weld pipe for a large Canadian buyer and an overall improvement in customer demand.

Overall, in 2012, EVRAZ's North American steel mills demonstrated strong performance in all product segments. Slightly better results for construction and tubular products were achieved through redistribution of production capacity from other product categories.

In Q1 2013, EVRAZ's North American steel mills are expected to continue running at high utilisation rate with a significant pick-up in the order book for flat products and some positive pricing dynamics.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Construction products	845	897	767	810
Railway products	989	1,023	932	928
Flat-rolled products	1,017	1,134	901	992
Tubular products	1,509	1,486	1,461	1,472

EUROPE

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Crude steel	454	776	(41.5)%	0	81	(100.0)%
Steel products	1,028	1,267	(18.9)%	230	237	(2.6)%
Construction products	69	131	(47.6)%	26	26	0.5%
Flat-rolled products	920	1,057	(13.0)%	200	207	(3.4)%
Other steel products	39	79	(50.6)%	4	4	18.3%

In Q4 2012, crude steel production at EVRAZ Vitkovice Steel (EVS) was temporarily suspended to reduce slab inventory. Meanwhile, output of steel products demonstrated only a minor decrease of 3% compared to Q3 2012, as the plate mill was working through the slabs inventory and was also running on purchased slabs.

Overall, in 2012 crude steel output was lower by 42% vs. 2011 as a result of prolonged maintenance works at the EVS steel shop in July-August 2012 and temporary suspension in Q4 2012. In 2012, output of steel products decreased by 19% year-on-year in an environment of subdued demand and continuing macroeconomic uncertainty in Europe.

In January 2013 the EVS steel shop resumed operation but future performance will be dependent upon prevailing market conditions.

In 2012, output of flat-rolled products at EVRAZ Palini e Bertoli in Italy (part of EVRAZ Europe) remained flat amounting to 420 thousand tonnes of plate.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Steel products
Construction products	877	896	890	877
Flat-rolled products	743	907	674	715

SOUTH AFRICA

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Pig iron	620	660	(6.0)%	176	84	108.1%
Crude steel	572	681	(16.0)%	166	78	113.8%
Steel products	461	564	(18.2)%	123	66	85.9%
Semi-finished products	15	51	(70.9)%	0	0	n/a
Finished products	446	513	(13.0)%	123	66	85.9%
Construction products	169	179	(5.5)%	45	27	68.1%
Flat-rolled products	243	287	(15.5)%	71	35	103.3%
Other steel products	34	46	(26.4)%	6	4	54.1%

In Q4 2012, output of all products at EVRAZ Highveld Steel and Vanadium, including pig iron, crude steel and steel products recovered as compared to Q3 2012 when a four-week industrial action led to a suspension of operations. In the reporting quarter, pig iron output increased by 108% vs. Q3 2012, while volumes of crude steel and steel products grew by 114% and by 86% respectively.

Overall, in 2012 operational performance of EVRAZ Highveld Steel and Vanadium was impacted by unstable operations in the first half of 2012, the industrial action in Q3 2012, ramp-up problems in the second half of the year following the end of industrial action as well as by a transportation strike in the country. As a result, production of pig iron and crude steel decreased by 6% and 16%, respectively, compared to 2011. Annual output of steel products was lower by 18% year-on-year for the aforementioned reasons as well as weaker market demand.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Steel products
Semi-finished products	489	587	699	742
Construction products	737	797	730	712
Flat-rolled products	765	837	699	740
Other steel products	604	677	636	615

MINING

IRON ORE

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Iron ore products	20,753	21,170	(2.0)%	5,133	5,158	(0.5)%
Concentrate, saleable (Russia)	5,615	6,447	(12.9)%	1,331	1,569	(15.2)%
Sinter (Russia)	4,698	4,473	5.0%	1,230	1,128	9.0%
Pellets (Russia)	6,051	5,907	2.4%	1,572	1,397	12.5%
Lumpy ore (Ukraine)	2,608	2,446	6.6%	580	559	3.8%
Fines ore (South Africa)	607	640	(5.1)%	166	153	8.9%
Lumpy ore (South Africa)	1,174	1,257	(6.6)%	253	352	(28.1)%

Overall production of saleable iron ore products by the Company remained broadly flat in Q4 2012 and was down 2% in 2012 compared to 2011.

Production of saleable concentrate in Russia decreased by 15% in Q4 2012 compared to the previous quarter as a result of temporary suspension of Evrazruda's Irba mine in November-December 2012 (which became uneconomic in the current market environment) and change in the product mix (larger volumes of sinter output). In Q4 2012, production of pellets increased by 13% compared to Q3 2012 after the completion of scheduled kiln repair at EVRAZ KGOK iron ore processing plant in Q3 2012.

In 2012, production of saleable concentrate in Russia decreased by 13% for the abovementioned reasons as well as due to termination of processing of third party raw ore being uneconomic in the current market environment.

No major changes in volumes of saleable concentrate, sinter and pellets produced at Russian operations are expected in Q1 2013 compared to Q4 2012.

EVRAZ Sukha Balka production of lumpy ore in Q4 2012 grew by 4% vs. Q3 2012 despite the repositioning of a skip conveyor at the Yubileynaya mine that continued from mid-September to mid-November 2012.

Total output of lumpy ore by EVRAZ Sukha Balka in 2012 was 7% higher compared to 2011 as a result of smoother repositioning of a skip conveyor in the reporting year vs. 2011.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Iron ore products
Concentrate, saleable (Russia)	84	111	70	82
Sinter (Russia)	91	128	70	89
Pellets (Russia)	91	132	74	95
Lumpy ore (Ukraine)	61	78	50	61
Fines ore (South Africa)	12	24	13	9

COAL

Product, '000 tonnes	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Raw coking coal (mined)	8,506	6,303	35.0%	2,181	2,313	(5.7)%
Raw steam coal (mined)	2,283	2,965	(23.0)%	644	892	(27.8)%
Coking coal concentrate (production)	6,477	6,501	(0.4)%	1,575	1,627	(3.2)%
Steam coal concentrate (production)	421	859	(50.9)%	79	132	(40.3)%
Raspadskaya*
Coking coal (mined)	7,002	6,251	12.0%	2,191	1,377	59.1%

* Reported numbers are for 100% production. As at 31 December 2012 EVRAZ held a 41% effective interest in the Raspadskaya coal company, on 16 January 2013 EVRAZ increased interest in Raspadskaya to 82%.

Coking coal

In Q4 2012, raw coking coal production at Yuzhkuzbassugol decreased by 6% compared to Q3 2012, mostly due to a scheduled two-month longwall repositioning at the Osinnikovskaya mine in the reporting quarter. The decrease in output of raw coking coal in Q4 2012 vs. Q3 2012 contributed to lower production volumes of coking coal concentrate by 3%.

Overall, in 2012 raw coking coal output by Yuzhkuzbassugol was 35% higher compared to 2011 due to more stable mines performance as a result of successfully implemented operational improvement programmes.

In Q1 2013, raw coking coal production is envisaged to grow by 15% as the Alardinskaya mine shall increase output and the Yerunakovskaya VIII mine is expected to deliver first coal starting from February 2013.

Steam coal

Production of raw steam coal decreased by 28% in Q4 2012 vs. Q3 2012 mostly due to a combination of two factors: suspension of mining at the Gramoteinskaya mine as a result of a fire and longwall repositioning at the Kusheyakovskaya mine that started in December 2012.

In 2012, output of raw steam coal decreased by 23% compared to 2011 following the repositioning of a longwall at the Gramoteinskaya mine in Q1 2012, as well as suspension of mining at the Gramoteinskaya mine in Q4 2012.

Steam coal concentrate production decreased by 40% vs. Q3 2012 and by 51% in 2012 compared to 2011 due to larger raw steam coal sales and lower output.

In Q1 2013, steam coal production is expected to decrease vs. Q4 2012 as the Kusheyakovskaya mine will remain suspended for the longwall repositioning until the end of February 2013. In addition, the Gramoteinskaya mine is expected to remain closed in Q1 2013.

Average selling prices

USD/tonne (ex works) unless otherwise stated	2012	2011	Q4 2012	Q3 2012
Raw coking coal	69	97	63	65
Raw steam coal	27	36	25	27
Coking coal concentrate	136	203	116	129
Steam coal concentrate	56	80	49	59

VANADIUM

Product, tonnes of V*	2012	2011	2012/ 2011, change	Q4 2012	Q3 2012	Q4 2012/ Q3 2012, change
Vanadium in slag (gross production)	21,060	20,741	1.5%	5,163	4,528	14.0%
Russia	14,856	12,860	15.5%	3,676	3,618	1.6%
South Africa	6,205	7,881	(21.3)%	1,487	911	63.3%
Vanadium in final products (saleable)
Ferrovanadium	14,381	16,683	(13.8)%	2,773	3,297	(15.9)%
Produced at own facilities	7,259	6,321	14.8%	1,607	1,671	(3.8)%
Processed at 3rd parties' facilities	7,122	10,362	(31.3)%	1,166	1,626	(28.3)%
Nitrovan®	2,723	2,874	(5.3)%	766	782	(2.1)%
Oxides, vanadium aluminium and chemicals	1,330	1,277	4.1%	186	443	(58.0)%

* Calculated in pure vanadium equivalent.

In Q4 2012, EVRAZ's total production of primary vanadium (vanadium in slag) increased by 14% compared to Q3 2012 after EVRAZ Highveld Steel and Vanadium resumed its operations, which had been interrupted by union industrial action in July-August 2012.

Overall, in 2012 the strong performance of Russian operations not only fully offset lower output at EVRAZ Highveld Steel and Vanadium but led to overall growth of production of vanadium in slag at EVRAZ by 2%.

In Q4 2012, total ferrovanadium production and ferrovanadium production at third parties' facilities in particular were lower by 16% and 28%, respectively, due to decreased output in South Africa as the required volume of vanadium slag was not delivered to the processing plant due to the transportation strike in the country and lower production of vanadium slag.

For full year 2012, EVRAZ increased production of ferrovanadium at its own facilities in the Czech Republic and Russia which were operating at maximum capacity to meet the improved market demand.

The decrease in volumes of oxides, vanadium aluminium and chemicals is largely attributable to problems with primary feedstock availability in the United States.

The lower output of vanadium slag at EVRAZ Highveld Steel and Vanadium  may adversely affect production of Nitrovan® and ferrovanadium converted at third parties' facilities in Q1 2013.

Production of oxides, vanadium aluminium and chemicals in Q1 2013 may be impacted by scheduled maintenance works at EVRAZ Stratcor.

Average selling prices

USD/tonne of V (ex works)	2012	2011	Q4 2012	Q3 2012
Vanadium in final products
Ferrovanadium	24,062	27,653	23,579	24,517
Nitrovan®	27,900	29,506	26,912	28,615
Oxides, vanadium aluminium and chemicals	32,579	36,194	36,024	30,944

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 Ukraine they also include railway products, for Europe - slabs and cut shapes; for South Africa - rails.

For further information:

Media Relations:

Oleg Kuzmin

VP, Corporate Communications

London: +44 207 832 8998          Moscow: +7 495 937 6871

media@evraz.com

Investor Relations:

Sergey Belyakov

Director, Investor Relations

London: +44 207 832 8990          Moscow: +7 495 232 1370

ir@evraz.com

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top 20 steel producers in the world based on crude steel production of 16.8 million tonnes in 2011. In 2011 EVRAZ sold 15.5 million tonnes of steel products. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2011 were US$16,400 million and consolidated EBITDA amounted to US$2,898 million. The H1 2012 consolidated revenue was US$7,619 million and the H1 2012 EBITDA was US$1,175 million.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCNKFDQABKKCDD