Sales volumes review

Evraz North America’s steel product sales improved by 13%, from 1.7 million tonnes in 2016 to 1.9 million tonnes in 2017, due to improvements in the domestic energy and infrastructure sectors. EVRAZ sold 376 thousand tonnes of railway products in 2017, an increase of 17% year-on-year, in the view of the market shift to the premium product mix and the market share increase. Flat product volumes went down by 4% to 512 thousand tonnes in 2017, compared with 536 thousand tonnes in 2016. Construction product sales decreased by 14% to 241 thousand tonnes.

Tubular products sales surged by 40% to 749 thousand tonnes in 2017, up from 534 thousand tonnes in 2016. The major driver were OCTG products, which saw 306% annual sales growth from 82 thousand tonnes in 2016 to 333 thousand tonnes in 2017 amid a recovery in the drilling activity. LDP sales dropped by 42% to 178 thousand tonnes due to major pipeline projects experiencing difficulties with receiving project approvals.

Evraz North America maintained its leadership in North American rail and Canadian OCTG markets during 2017, with respective market shares by volume of roughly 34% and 28%. In 2017, the Group ramped up EVRAZ Regina’s mill after the completion of its investment projects, and initiated two new projects at EVRAZ Red Deer and EVRAZ Pueblo to further improve the OCTG product mix.

EVRAZ market shares in North America by key products, %
Steel, North America segment sales volumes, kt
2017 2016 Change, %
Steel products
 Semi-finished products 7 0 n/a
 Construction products 241 281 (14.3)
 Railway products 376 321 17.1
 Flat-rolled products 512 536 (4.5)
 Tubular products 749 534 40.3
Total 1,885 1,672 12.7