Retention of low-cost position
Efficiency and cost-cutting remain EVRAZ primary focus. The Group is on pace to generate improvements with an annual EBITDA effect of 3% of the cost of goods sold.
The Coal segment’s cash cost was US$47 per tonne in 2018, mainly due to geological conditions, rise in auxiliary materials prices, and additional involvement of 3rd-party contractors due to higher volumes.
Cash costs of semi-finished products totalled US$246 per tonne in 2018, which is largely in line with the 2017 figure, as efficiency improvements have offset the growth of prices for key raw materials.
In 2018, the EBITDA effect from cost-cutting initiatives totalled US$273 million. The Group plans to maintain the current pace of improvement with an annual cost-cutting programme at the level of at least 3% of the cost base.