Ukrainian issues continue to hang over Evraz

Although peace between Russian and Ukraine is still in place it remains fragile, and is no doubt causing continuing concern for Evraz, the steel and mining company based in Ukraine.

The next set of annual figures that Evraz is due to release on 16 April, with a preliminary set on the 9 April, will be badly affected. Over 80% of Ukrainian steel exports go to Russia, and current frosty relations will be hampering existing agreements and will surely delay future talks. Roughly 6% of Evraz’s steel is manufactured in Ukraine and set for export to Russia.

Shares of Evraz initially took a thump and hit an intraday low of 52p in mid-March; since then, as the situation has not escalated, they have made a recovery back up to 74p and have swung from over sold into overbought territory.

From a fundamental point of view, however, it is still difficult to feel confident enough to buy into the firm due to its complicated Russian and Ukrainian exposure.   

Evraz chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find articles by analysts