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.

EVRAZ market share in North America by key products, %
Steel, North America segment sales volumes, kt
2016 2015 Change, %
Steel products
Construction products 281 320 (12.2)
Railway products 321 518 (38.0)
Flat-rolled products 536 570 (6.0)
Tubular products 534 814 (34.4)
Total 1,672 2,222 (24.8)