The Czech Metallurgical Plant Euraz stopped production

Evraz’s unit in the Czech Republic of Evraz Vitkovice Steel suspended its production line until August 6 due to poor demand for steel in Europe.

"The situation in the market is still under pressure from an excess supply and the best illustration is that our production is loaded 65 percent of the estimated capacity," said the representative of the Czech factory, Yaromir Krivat.

According to him, the rolling camp Evraz Vitkovice Steel will be in simple from July 22 to August 5 due to the holidays.

Evraz already stopped the production of steel in the Czech Republic for a month in April this year. Then the company's management considered the prospect of a complete stop of the plant or its sale.

The stop of the production line on the Vitkovice Steel seriously affected the Czech Coal Company of the New World Resources, which is the main supplier of Euras. The shares of this enterprise today began to fall in the morning and at this moment decreased by half a percent.

However, analysts are sure that the stop of metallurgical production will not affect the general profitability of the New World Resources. "During the previous stop, we did not register a significant drop in income from the sale of coking coal," said Patria Finance Analyst Tomash Sikora.