OREANDA-NEWS. EVRAZ plc (LSE: EVR) today releases its operational results for the third quarter of 2015.

Q3 2015 vs Q2 2015 HIGHLIGHTS:

· Consolidated crude steel output reached 3.5 million tonnes, improving 3% QoQ on the back of completed repair works at Russian steel mills.

· Production of steel products, net of re-rolled volumes, was largely unchanged.

· The share of finished steel products within consolidated volumes grew to 69% in Q3 2015 from 65% in Q2 2015 due to seasonal pickup in demand for construction products in Russia and improved demand for linepipe in North America.

· Production volumes of railway products were 22% down due to maintenance at the Russian EVRAZ ZSMK rail mill and at EVRAZ North America rail mill in Pueblo coupled with seasonality in North America rail demand.

· Consolidated raw coking coal output and production of coking coal concentrate increased by 36% and 17% respectively due to resumption of full-scale mining at Yuzhkuzbassugol and Raspadskaya on the back of improving domestic demand in Russia.

In Q3 2015, production of pig iron and crude steel grew by 7% and 5% respectively, as in Q2 2015 production was affected by capital repair works at EVRAZ ZSMK’s blast furnace 3 and EVRAZ NTMK’s blast furnace 6. Quarterly production of steel products increased mostly due to higher volumes of construction products (+11%) reflecting stronger demand during peak domestic construction season. Output of construction products in the nine months of 2015 vs. the same period of 2014 declined only by 2.5%. Production of semi-finished steel products was largely unchanged in Q3 2015 over Q2 2015. When comparing the first nine months of this year to the same period last year, semi-finished goods demonstrated growth due to reallocation of part of the production volumes to export markets. Production of railway products in Q3 2015, in particular rails, was down by 17% over Q2 2015 as a result of the scheduled capital repair of the EVRAZ ZSMK electric arc furnace and rail mill in Q3 2015. The 9M 2015 to 9M 2014 decrease in railway product output is attributable to lower consumption in the CIS countries caused by a decrease in new construction and overhaul of railway infrastructure. Lower prices are in line with global benchmarks. In Q4 2015, steel production is expected to remain at the level of Q3 2015 and production of semifinished products for exports may increase due to low season in Russia.