Development of product portfolio and customer base
Premium infrastructure steel products, a wide range of coking coal grades, and modernised large-scale production sites make EVRAZ the leader in the markets where it operates.
In 2015, we started tracking our customer focus programme, which in 2016 has brought an annual EBITDA effect of US$169 million.
Most customer focus efforts were aimed at expanding rail sales, support domestic steel demand, optimise logistics and develop a new customer base.
Rails sales on the Russian market remain stable through the cycle. With its key client, Russian Railways, EVRAZ targets securing a leading market share despite the increase in domestic competition.
EVRAZ’ efforts to increase its presence on overseas rail markets boosted volumes to 75 kt in 2016. We target to reach c. 250 kt of rail exports.
In 2016, EVRAZ substantially increased its value-added slabs and billets sales to the domestic and export markets with an average premium of US$10-12 per tonne to the base grade margin.