Sales volumes review

Despite softer demand in 2019, EVRAZ North America’s steel product sales inched up by 2% to 2.2 million tonnes. This trend was mainly supported by strong sales growth of LDP and railway products. EVRAZ North America moved up its sales of railway products during the period by 5% to 441 thousand tonnes. Meanwhile, construction product sales declined by 11% to 256 thousand tonnes and flat product sales went down by 8% to 523 thousand tonnes in 2019 due to slower year-on-year production growth in the construction, manufacturing and mechanical engineering sectors.

Tubular product sales fell by 3% to 795 thousand tonnes, down from 823 thousand tonnes in 2018. Sales of LDP soared by 64% to 346 thousand tonnes in 2019 compared to 211 thousand tonnes the previous year, driven by favourable US and Canadian LDP markets, as well as EVRAZ North America’s customer focus efforts. By contrast, sales of OCTG products dropped by 21% to 245 thousand tonnes, versus 310 thousand tonnes in 2018, due to multiple factors that suppressed drilling activity in Canada.

In 2019, EVRAZ North America strengthened its leading position in the rail market by 3 percentage points, reaching a market share of 42%, mainly thanks to higher sales to Canadian Class I railroads. The Group also expanded its LDP market share by 3 percentage points to 26% by achieving the target production level at the Regina steel mill and securing all major Canadian LDP projects.

EVRAZ market shares in North America by key products, %
Sales volumes of Steel North America segment, ‘000 tonnes
2019 2018 Change, %
Steel products, external sales 2,207 2,156 2.4
Semi-finished products 192 57 n/a
Construction products 256 287 (10.8)
Railway products 441 421 4.8
Flat-rolled products 523 568 (7.9)
Tubular products 795 823 (3.3)
Total steel products 2,207 2,156 2.4