Development
of product portfolio and customer base

Secure position as a major high-volatile HCC and SHCC supplier in Russia

Key developments 2016

In 2016, EVRAZ maintained leading positions on the Russian coking coal market thanks to the following developments:

  • A new integrated solution for coal blend optimisation to meet clients’ needs;
  • More effective customer feedback mechanisms, including:
    • Improved client sessions to discuss their new product needs;
    • Conducting follow-up sessions with plant management to inform them of clients’ new product needs;
    • Maintaining a constant dialogue at key industry conferences and exhibitions;
  • Adopting international pricing benchmarks to improve transparency at clients’ requests;
  • Conducting site visits for new clients and regular audits at the request of loyal customers;
  • Improving product quality by investing in equipment at processing plants reduced delivery rejections due to quality issues by 20%;
  • Plant managers’ motivation system has been changed to increase focus on product quality.

Outlook for 2017

  • Maintain leading positions on Russian market by keeping product quality consistent;
  • Improve reliability of deliveries;
  • Increase mid-vol HCC production volumes;
  • Increase production, as well as investments in expanding and overhauling production facilities.

Increase sales to Ukrainian market

Key developments 2016

  • EVRAZ has substantially increased shipments to the Ukrainian market, reaching a market share of 12% in 2016.

Mid-term outlook

  • To reach 3 mt of annual sales to Ukraine and gain a c. 20% market share.

Expand export portfolio

Key developments 2016

EVRAZ reached its ambitious 2016 export sales targets thanks to:

  • Ensuring geographical sales flexibility:
    • Main export destinations: Ukraine, Japan, South Korea, and Vietnam;
    • Some volumes were exported to China on spot contracts;
  • Conducting site visits for new clients and regular audits at the request of key customers.

Outlook for 2017

  • Improve sales structure by diversifying geographically and maintaining balance between long-term contracts and spot deliveries;
  • Key overseas export sales are aimed at South Korea and Japan;
  • To reach 3 mt of annual sales to overseas markets.