OREANDA-NEWS.   EVRAZ plc (LSE: EVR) today releases its operational results for the first quarter of 2014 and the Interim Management Statement.

•    Consolidated crude steel production decreased by 8% in Q1 2014 vs. Q4 2013 due to scheduled maintenance works at Russian steel mills
•    Consequently output of gross steel products declined by 4% due to lower availability of crude steel
•    Share of finished steel products increased to 74% in Q1 2014 vs. 69% in Q4 2013 due to redistribution of available crude steel volumes towards production of higher margin finished products
•    Output of iron ore products in Russia decreased by 2%, impacted by the disposal of EVRAZ VGOK in October 2013 and two mines of Evrazruda in December 2013
•    Consolidated raw coking coal output decreased by 6% due to repositioning of longwalls at several underground mines and shutdown of the Abashevskaya mine. This was partially offset by the launch of a new longwall at the Raspadskaya underground mine
•    Average prices for most of EVRAZ’s steel products in Russia decreased in the period, although since March 2014 prices have started to increase as a result of the improving demand and the start of the construction season
•    Average prices for the majority of steel products in North America rose, thanks to better product mix and high demand as well as lower imports
•    Average prices for Russian-produced iron ore products and coking coal concentrate were flat, despite negative trends in the global steelmaking raw materials market
•    In Q1 2014, the preliminary* capital expenditure amounted to USD 158 million, compared with USD 185 million in Q4 2013 and USD 262 million in Q1 2013. The company intends to keep its annual capital expenditures below USD 900 million in 2014 and beyond
•    Since 31 December 2013 up to the date of this publication the Group’s financial position has been affected by the disposal of EVRAZ Vitkovice Steel in April 2014 for a total consideration of USD 287 million and by depreciation of the Russian local currency
•    In Q2 2014, EVRAZ expects to grow the output of crude steel and steel products at the Russian mills due to lower scheduled downtime for maintenance and repairs
•    Hot tests are expected to be completed at the Kostanay rolling mill by the end of April and production to commence in Q2 2014

*Estimate as EVRAZ IFRS books are not yet closed