“In January-March this year, Metinvest reduced steel production by 4% year-on-year and by 5% quarter-on-quarter to 469 thousand tons, according to a press release from the parent company Metinvest B.V.
According to the release, pig iron production decreased by 10% compared to Q1-2023 and by 5% compared to Q4-2023, to 448 thousand tons, and coke production by 11% and 3%, respectively, to 283 thousand tons. In particular, in 1Q2024, Kametstal produced 403 thousand tons of pig iron and 469 thousand tons of crude steel, which is lower than in 2023 and is mainly due to the shutdown of blast furnace No. 9 for scheduled overhaul in March 2024.
In 1Q2024, the output of semi-finished products amounted to 166 thousand tons, down 5% compared to 1Q2023 and 41% quarter-on-quarter, mainly due to the shutdown of BF-9 at Kametstal for repairs, as well as an increase in domestic consumption at downstream stages.
In the first quarter of 2024, finished product output increased by 4% quarter-on-quarter and by 8% year-on-year to 584 thousand tons. At the same time, flat products output increased by 12% compared to Q1-2014, but decreased by 1% compared to Q4-2013, to 282 thousand tonnes, due to an increase in the order book at rolling mills in Italy and the UK, while long products output decreased by 3% compared to Q1-2013, and increased by 17% compared to Q4-2014, to 302 thousand tonnes.
In particular, hot-rolled plate output increased by 8% year-on-year to 253 kt due to a shift in the order book in favor of these products at Ferriera Valider in Italy; galvanized cold-rolled coil output doubled year-on-year to 29 kt. tonnes due to the resumption of galvanized cold-rolled steel production in Italy; production of galvanized cold-rolled coils doubled year-on-year to 29 thousand tonnes. kt due to the resumption of production at Unisteel in Ukraine amid more stable electricity supplies in the first quarter of 2024 than in the first quarter of 2023; long products output increased by 17% as billet production at Kametstal stabilized and supplies to Promet Steel in Bulgaria returned to normal.
It should be noted that on February 24, 2022, Russia launched a full-scale military invasion of Ukraine. The Group’s plants in Ukraine, except for Mariupol and Avdiivka, continue to operate at different levels of capacity utilization, taking into account safety, personnel, electricity, logistics and economic factors.
In the first quarter of 2024, coke production decreased by 11% year-on-year and by 3% quarter-on-quarter to 283 thousand tons after some cells of coke oven battery No. 1 at KAMETSTAL were shut down.
It is also reported that Metinvest increased its total production of iron ore concentrate by 2.1 times year-on-year to 4.859 million tons in January-March 2024, pellets by 31% to 1.585 million tons, and total coking coal concentrate production decreased by 26% to 1.086 million tons.
“As a result, in the first quarter of 2024, iron ore production increased by 36% quarter-on-quarter to 4.859 million tons; production of commercial iron ore products increased by 41% quarter-on-quarter to 4.403 million tons; production of saleable iron ore concentrate increased by 53% quarter-on-quarter to 2.818 million tons; production of saleable pellets increased by 23% quarter-on-quarter to 1.585 million tons, partly due to increased orders for pellets,” the press release states.
The unblocking of Ukrainian ports on the Black Sea and an increase in the order book for pellets had the following effects in 1Q2024 compared to 1Q2023: gross iron ore concentrate output increased by 2.2 times, commercial iron ore products by 2.3 times, commercial iron ore concentrate by 4 times, and commercial pellets by 31%, the report says.
The press release explains that the Group’s decrease in coal concentrate output by 4% quarter-on-quarter and 26% year-on-year was due to a 6% drop in production at Metinvest Pokrovskugol in Q4 2021 and a 9% drop in production in Q1 2021, to 640 thousand tons, and a deterioration in the quality of coking coal and a decline in production. At the same time, the production of coal concentrate at United Coal (USA) remained almost at the same level as in the previous quarter – 446 thousand tons, but decreased by 41% due to the downtime of the Carter Roag mine and a decrease in production at some Wellmore mines.
As reported, in 2023, Metinvest increased its total production of iron ore concentrate by 4% compared to 2022 to 11.092 million tons, pellets by 66% to 5.283 million tons, and total coking coal concentrate production increased by 10% to 5.455 million tons.
In 2023, the Group decreased steel production by 31% compared to 2022 to 2.025 million tons, pig iron by 36% to 1.765 million tons, and coke by 25% to 1.241 million tons.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Metinvest’s major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
“Metinvest Group comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA.
The major shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
