“Metinvest reduced steel production by 43% year-on-year to 1.531 million tons in January-September this year, according to a press release from the parent company Metinvest B.V. on Wednesday, following the results of the third quarter and nine months of this year.
During this period, pig iron production decreased by 46% to 1.344 million tons, coke production by 31% to 948 thousand tons, and commercial coke production increased by 7% to 644 thousand tons.
At the same time, it is noted that due to the outbreak of Russia’s large-scale military aggression against Ukraine on February 24, 2022, Metinvest decided to suspend production at a number of its enterprises in Mariupol, Avdiivka and Zaporizhzhia, including Azovstal, Ilyich Iron and Steel Works of Mariupol, Avdiivka Coke and Zaporizhzhia Coke. Later, Zaporizhzhia-based enterprises of the Group resumed production.
As of today, the Group’s Ukrainian enterprises, except for those located in Mariupol and Avdiivka, continue to operate at varying levels of utilization, taking into account security, electricity supply, logistics and economic factors.
In the third quarter of 2023, pig iron production decreased by 10% quarter-on-quarter to 425 thousand tons, mainly due to the shutdown of blast furnace No. 1 at Kametstal for a scheduled overhaul. As a result, steel production decreased by 8% to 499 thousand tons. Over the first nine months of the year, the Group’s iron and steel production decreased by 46% and 43%. The suspension of production at the Mariupol plants from the end of February 2022 was partially offset by volumes at Kametstal.
In the third quarter, the Group produced 159 thousand tonnes of semi-finished products, down 27% quarter-on-quarter, mainly due to higher domestic consumption at downstream stages.
In addition, in the first nine months of 2023, the output of semi-finished products decreased by 26% to 657 thousand tons due to the absence of production at Mariupol plants since the end of February 2022. This was partially offset by an increase in the production of commercial billets at Kametstal’s facilities.
In the third quarter, Metinvest’s output of finished products decreased by 3% quarter-on-quarter to 583 thousand tons. At the same time, flat products production decreased by 27 thousand tons to 267 thousand tons due to a reduction in the order book at the rolling mills in Italy and the UK. This was partially offset by an increase in galvanized cold-rolled coil production at Unisteel Ukraine as the fourth inductor was restarted after being shut down for overhaul in the second quarter.
At the same time, long products production increased by 9 thousand tons to 316 thousand tons, mainly due to an increase in the rebar order book at Kametstal.
In the first nine months of 2023, finished product output fell by 26% to 1.728 million tons. At the same time, flat products production decreased by 666 thousand tons to 847 thousand tons due to the shutdown of Mariupol’s plants. This was partially offset by an increase in hot-rolled plates production at re-rolling mills in Italy and the UK as third-party slab supplies were restored.
In turn, long products output increased by 72 thousand tonnes to 881 thousand tonnes due to the stabilization of billet production at Kametstal and normalization of supplies to Promet Steel in Bulgaria.
There was no output of rail and pipe products as they were produced at Mariupol-based plants.
Coke production in the third quarter decreased by 9% quarter-on-quarter to 299 thousand tons, mainly due to lower coke demand at Kametstal. Over the first nine months of the year, this figure fell by 31% to 948 thousand tons due to the suspension of production at Azovstal and Avdiivka Coke.
As reported earlier, in January-March 2023, Metinvest reduced steel production by 75% compared to the same period in 2022 to 491 thousand tons, pig iron production also by 75% to 448 thousand tons, and coke production by 59% to 318 thousand tons, including a 1% increase in commercial coke production to 213 thousand tons.
In the first half of 2023, the Group reduced steel production by 57% year-on-year to 1.032 million tonnes, pig iron by 59% to 918 thousand tonnes, and coke by 40% to 648 thousand tonnes, including a 7% increase in commercial coke production to 429 thousand tonnes.
“In 2022, Metinvest decreased steel production by 69% compared to 2021, to 2.918 million tons, pig iron by 72%, to 2.743 million tons, coke by 64%, to 1.653 million tons, including commercial coke by 49%, to 811 thousand tons.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA.
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.
