Sales volumes review

EVRAZ’ coking coal product sales climbed by 2% to 15.6 million tonnes in 2016, compared with 15.2 million tonnes in 2015, due to stable local and export demand, as well as higher production volumes at the Group’s Mezhegeyugol facility following the launch of room-and-pillar mining operations in 2016.

Intersegment coking coal product sales remained mostly unchanged at 5.7 million tonnes. Total external coking coal product sales rose by 4% year-on-year 9.9 million tonnes, compared with 9.5 million tonnes in 2015, thanks to the expanded customer base and stable coal quality.

Coking coal product sales on Russia’s domestic market remained mostly unchanged 9.8 million tonnes, with around 49% consumed by EVRAZ’ steelmaking facilities.

The Group’s coal products export shipments increased by 8% in 2016 to 5.8 million tonnes, compared with 5.3 million tonnes the year before. EVRAZ was able to increase sales to the more profitable markets of Ukraine, Europe, South Korea and Japan by 32%, from 3.6 million tonnes in 2015 to 4.8 million tonnes in 2016 .

In 2016 EVRAZ maintained its leading position in domestic market with 33% market share in high-volatile hard-coking coal grades and 51% in high-volatile semi-hard grades.

EVRAZ market share of Russia’s high-vol coking coal grades , %
EVRAZ market share of Russia’s high-vol coking coal grades
Coal segment sales volumes, kt
2016 2015 Change, %
External sales
Coal products 9,867 9,474 4.1
Coking coal 1,569 1,905 (17.6)
Coal concentrate 8,298 7,569 9.6
Inter-segment sales
Coal products 5,701 5,736 (0.6)
Coking coal 1,249 1,348 (7.3)
Coal concentrate 4,452 4,388 1.5
Total, coal products 15,568 15,210 2.4