Russian steelmaker Evraz, of which Roman Abramovich holds a 30% stake, is cutting costs to remain competitive, according to a report in the UK Daily Telegraph.

According to the newspaper, Evraz’s interim revenues fell 27.6% to $3.5 billion and net profit collapsed from $19 million to $7million.

Structural overcapacity remains a challenge, said CEO Alexander Frolov; and China’s economic slowdown as ‘wrought havoc on the industry’, according to the Daily Telegraph story.

Frolov claims that Q2 has seen steel market improvements when compared with Q1 and that outlook for the rest of the year was ‘cautiously optimistic’.