Sales volumes review
Evraz North America’s steel product sales volumes fell by 24.8% from 2.2 million tonnes in 2015 to 1.7 million tonnes in 2016 due to market headwinds. Construction product sales volumes decreased by 12.2% to 281 thousand tonnes. EVRAZ sold 321 thousand tonnes of railway products in 2016, down by 38% from 518 thousand tonnes in 2015, amid lower demand from major customers. Flat product volumes slipped by 6% to 536 thousand tonnes in 2016, compared with 2015 volumes of 570 thousand tonnes.
Tubular products sales slid by 34.4% to 534 thousand tonnes in 2016, down from 814 thousand tonnes in 2015, primarily due to a 42% decline in OCTG products sales as a result of subdued oil and gas exploration and production activity in North America. LDP sales volumes declined 16% to 305 thousand tonnes due to approval delays on key pipelines.
Evraz North America maintained its leadership in rails and LDP during 2016 with market shares of roughly 28% by volume and 27%, respectively. In 2016, the Group almost completed the construction of an LDP mill at Regina, which should underpin its leadership position in LDP in 2017.