Evraz Highveld Steel and Vandium’s (EHS) steel segment production for the second quarter ending June fell sharply from the previous quarter and from the same quarter last year.
The only gains quarter-on-quarter were a 22% rise in coil production‚ and a 3% rise in hot metal production from the same quarter last year.
The company said the increase in coil production was mainly due to an increase in domestic market demand.
Otherwise‚ production of hot metal‚ continuously cast blocks‚ plates and vanadium slag all fell between 13% and 23% quarter-on-quarter and between 11% and 27% in the period year-on-year.
Fines ore production dropped 16% from the previous quarter and 13% from the quarter last year.
In the vanadium segment‚ ferrovanadium fell 10% quarter on quarter and dipped 7% from the same quarter last year.
Modified vanadium oxide production gained 52% in the quarter-on-quarter period having dropped 12% from the same period last year.
Evraz said increased modified vanadium oxide production was due to the completion of maintenance work conducted during the first quarter.
Production of nitrovan vanadium‚ an alloy which strengthens steel more efficiently than ferrovanadium and reduces costs by up to 40%‚ fell 20% quarter-on-quarter and plunged 66% from the period last year.
Evraz said the lower nitrovan vanadium production was due to modified vanadium oxide being sold for the production of ferrovanadium.
The weighted average selling price for total steel output in the quarter of US$734 a ton fell 14% from the previous quarter‚ and dropped 19% from the same quarter last year.
In the vanadium segment prices crept up quarter-on-quarter‚ but were down between 14% and 17% from the same period last year.
The company on Friday said lower production volumes between the second and first quarters of the year were due to its “business stabilisation” project.
It said hot metal volumes were reduced to focus mainly on the domestic market‚ and to reduce unprofitable exports and also fixed costs. - I-Net Bridge