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.

Russian and North American rails production in 2016, mt
Russian long steel production in 2016,
Excluding railway products.
mt
Russian raw coking coal production in 2016, mt
North American LDP production in 2016,
mt
Customer focus programme Please see Additional Information for details , US$ million
In 2015, we started tracking our customer focus programme, which in 2016 has brought an annual EBITDA effect of US$169 million.
Breakdown of customer focus programme effect in 2016
Most customer focus efforts were aimed at expanding rail sales, support domestic steel demand, optimise logistics and develop a new customer base.

Key drivers

Rails sales volumes in Russia, kt
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.
Rails export sales volumes
(excl. CIS), kt
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.

Value-added semi-finished products sales volumes, mt
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.