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Evraz tube production falls in N. America

Keywords: Tags  Evraz, tubular production, second quarter, flat-rolled, railway, construction, Thorsten Schier

NEW YORK — Tubular production at Evraz Plc’s North American operations dropped 11.9 percent quarter over quarter amid increasing imports and lower drilling activity, the London-based steelmaker said in its second-quarter production report.

The company’s North American arm also "adjusted crews and undertook initiatives to optimize work-in-progress and finished goods stockpiles," the steelmaker said in the report.

Tubular output in North America fell to 199,000 tonnes in the quarter from 226,000 tonnes in the first quarter and was 5.7 percent lower than during the same 2012 period, according to the report.

Average selling prices for tubular products in the region fell 4.3 percent quarter on quarter to $1,322 per tonne and were 15.6 percent lower than the $1,566-per-tonne average price recorded during the same period a year ago.

Evraz recently joined a petition by domestic steel producers to impose anti-dumping and countervailing duties against imports of oil country tubular goods (, July 2).

The company said it expects tubular production to rebound in the third quarter, however, as drilling activity increases, its Portland, Ore.-based spiral mill ramps up and a new line pipe order is filled at its Camrose, Alberta, facility.

But while North American tubular production was down, output of construction products rose 30.4 percent to 103,000 tonnes compared with the same 2012 period due to the "faultless" operation of Chicago-based Evraz North America Inc.’s rod and bar mills, the parent company said. At the same time, flat-rolled steel production rose 5.9 percent to 269,000 tonnes and railway products output fell 12.7 percent to 117,000 tonnes in the same comparison.

Evraz’s North American total crude steel output fell 10.6 percent to 551,000 tonnes in the quarter compared with the same 2012 period due to unplanned maintenance work at its Pueblo facility in Colorado, according to the statement.

Average selling prices for flat-rolled products were down 19.7 percent to $872 per tonne, railway product prices were down 7.4 percent to $955 per tonne and construction products were down 12.9 percent to $775 per tonne compared with the same 2012 period.

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