Minning group Evraz warned of uncertainty around production and sales owing to turmoil in the oil and gas markets.
In Q3 2020, significant uncertainty remained around production and sales volumes for all product groups owing to continued turmoil in the oil & gas markets and the slow economic recovery during the resurgent COVID-19 pandemic, leaving North American customers cautious in purchasing strategies, Evraz warned.
The warning came as the company reported a fall in output, but a rise in sales product sales in the second quarter of the year.
For the second quarter of the year, crude steel output decreased by 5.1% on-quarter, mainly driven by capital repairs and gas pause at EVRAZ ZSMK in June as well as capital repairs at EVRAZ NTMK in May, the company said.
Steel products sales rose by 4.9% on-quarter, with sales of semi-finished products rising by 19.5% following a ‘change in the product mix,’ it added.
Sales of vanadium products fell by 22.6% on-quarter mainly due to lower steel utilisation rates as well as general decrease of vanadium demand following Covid 19 restrictions.
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