FTSE 100-listed mining company Evraz’s crude steel production fell six per cent year-on-year in the first quarter, causing its shares to plummet.
The Russia-headquartered company’s announcement that output had fallen to 4.07m tonnes triggered shares to hit an all-time low of 151.1p yesterday, over 65 per cent lower than a peak hit in early 2012.
However, quarter-on-quarter output rose by 11 per cent, mainly due to an absence of lengthy maintenance works at the miner’s Russian and Ukrainian steel mills.
The firm, which counts Russian oligarch Roman Abramovich among its owners, had said earlier in the month that the outlook for the world’s steel industry would remain fragile this year.
The company produced 4.8m tonnes of raw coking coal this quarter, an increase of 8.7 per cent from the last quarter of 2012 and a 30 per cent rise year on year.
Output of finished steel goods remained flat at 2.7m tonnes quarter-on-quarter.
“In the second quarter of 2013, steel output will grow to target levels as technical issues at crude steelmaking facilities have been resolved,” said Evraz.
“Tubular production volumes can be affected by lower drilling activity in Canada in the second quarter of 2013 due to seasonal slowdown, as well as due to increased imports in the North American market.”
The company’s consolidated revenues for the year ended 31 December 2012 were $14.7bn.