Sales volumes review
In 2019, the external sales of the Group’s Steel segment climbed by 10% to 12.1 million tonnes. This growth is explained by higher pig iron production as blast furnace No. 7, launched in 2018 at EVRAZ NTMK, reached its target production volumes. Sales of semi-finished products to third parties soared by 20%. During the period, sales of railway products grew by 4%, supported by stronger demand in both the wheel and rail markets. External sales of construction products increased by 3% due to the higher domestic demand.
Most of Steel segment’s key products sales in Russia strengthened in 2019, buoyed by solid domestic demand. As result of continued elevated railcar production and a number of overhauls, railway wheel sales rose by 16%. Rail sales climbed by 4%, mainly due to higher supplies to Russian Railways. The Group’s customer focus efforts aimed to promote the use of beams by improving their availability for clients and selling directly to large infrastructure projects, driving beam sales up 21%in 2019. Rebar sales slightly corrected by 1%. Structural products sales edged down by 1% due to heightened market competition.
EVRAZ aims to maintain and develop leading positions on the Russian rail market and in steel products in Siberia. In 2019, competition increased for the Steel segment’s key products. The Group’s market share in rails corrected to 76%, compared with 77% in the previous year and the market share for rail wheels edged down by 1 percentage point to 28% during the period. Meanwhile, the market share in beams surged by 5 percentage points to 68% in 2019. In structural products, the market share dropped from 42% to 40% in 2019. Meanwhile, the market share in grinding balls rose from 62% to 63%.
In 2019, EVRAZ Caspian Steel’s rebar sales jumped by 65% to 290 thousand tonnes amid dwindling shipments from its main competitor.
The Group’s finished vanadium product sales volumes climbed by 4% to 12.9 thousand tonnes in 2019, compared with 12.4 thousand tonnes of pure vanadium in 2018, mainly as a result of customer base expansion and moderately strong demand on Asian markets in H2 2019, while vanadium consumption in the EU, North America and the CIS was stagnant.
As a vertically integrated group, EVRAZ focuses on the internal consumption of its own iron ore products. In 2019, total iron ore product sales dropped by 5% to 1.9 million tonnes due to higher pig iron production at EVRAZ steel assets.
|Steel products, external sales||12,075||10,980||10.0|
|Other steel products||624||619||0.8|
|Steel products, inter-segment sales||318||573||(44.5)|
|Total steel products||12,393||11,553||7.3|
|Iron ore products There are some differences from the figures for 2018 that were published in the previous annual report due to adjustments in the sales volumes.||1,895||1,986||(4.6)|
|Other iron ore products||2||6||(66.7)|
|Vanadium products (tonnes of pure vanadium) There are some differences from the figures for 2018 that were published in the previous annual report due to adjustments in the sales volumes.||19,334||19,053||1.5|
|Vanadium in slag||6,451||6,701||(3.7)|
|Vanadium in alloys and chemicals||12,883||12,352||4.3|