In Q4 2012, EVRAZ’s overall production of crude steel decreased by 6% compared to Q3 2012, mainly due to a scheduled maintenance of a converter and the billet caster at EVRAZ ZSMK. The temporary suspension of work at EVRAZ Vitkovice‘s steel shop in the Czech Republic also contributed to the decrease in crude steel output.

For the whole year, consolidated crude steel production and gross production of steel products decreased by 5% and 4% YoY respectively, mainly due to a higher number of overhauls at Russian assets related to implementation of the modernization program, but also due to the temporary suspension of crude steel production at EVRAZ Vitkovice‘s steel shop in the Czech Republic to reduce slab inventory.

In 2012, the modernization of the rail mills at EVRAZ NTMK and EVRAZ ZSMK was largely completed, as well as the implementation of the PCI project at EVRAZ NTMK.

Consolidated production of finished steel goods was flat quarter-on-quarter and decreased by 5% YoYdue to lower output of flat-products (primarily in Europe) and railway products in Russia due to the reconstruction of the railway mill at EVRAZ ZSMK.

Share of finished steel products as the percentage of total production of steel products remained unchanged in 2012 vs. 2011 at 77% and increased to 80% in Q4 2012 from 73% in Q3 2012.