“Metinvest in January-March of this year reduced steel production by 75% compared to the same period last year – to 491 thousand tons, according to a press release from the parent company Metinvest B.V. on Friday evening.
According to it, pig iron production was also down 75% to 448,000 tons, coke production was down 59% to 318,000 tons, but merchant coke production was up 1% to 213,000 tons.
It is specified that this year the steel and iron smelting was carried out on “Kametstal”. In connection with the beginning of a large-scale military aggression by the Russian Federation against Ukraine, on February 24, 2022, Metinvest decided to suspend the production activities of a number of its enterprises in Mariupol, Avdiivka and Zaporizhia, including Azovstal, Illich Iron and Steel, Avdiivka Coke and Zaporizka Coke. Later, the group’s Zaporizhia companies resumed production. In turn, the assets of the group’s enterprises in Mariupol and Avdyivka suffered as a result of hostilities, while Mariupol is currently under temporary occupation.
It is also reported that the Ukrainian enterprises of the group, except for those located in Mariupol and Avdeevka, continue to operate at different levels of utilization, taking into account security factors, availability of electricity supply, as well as logistical and economic factors
In Q1 2023 iron production increased by 66% q-o-q mainly due to an increase in operating hours of both blast furnaces at MK Kametstal after the plant’s emergency shutdown due to lack of power supply in late November, with gradual resumption in December, as well as stabilization of the situation with power supply since late January. As a result, steel production increased by 96% q-o-q.
Q1 2023 iron and steel production figures are 75% lower than in the same period last year due to the shutdown of the Mariupol mills from the end of February 2022, as well as the transition to operating two blast furnaces instead of three at Kametstal.
In the 1st quarter of 2023 the production of commercial semi-finished products amounted to 282 thousand tons, which is twice as much as in the previous quarter due to the increase of liquid iron production, but 46% less than the same period last year due to the absence of production at the Mariupol blast furnaces from the end of February 2022.
In January-March 2023, the output of finished products increased by 28% quarter-on-quarter to 547 thnd mt. Production of flat products was up by 67,000 tonnes to 285,000 tonnes, mainly due to an increased order book for hot-rolled plates at rolling mills in Italy and the UK; production of long products was up by 53,000 tonnes to 262,000 tonnes due to higher steel production on the back of stabilized electricity supply at Kametstal.
In Q1 2023 production of finished products decreased by 63% compared to the same period of 2022, as flat products output decreased by 828 thousand tonnes – due to the shutdown of Mariupol integrated works from late February 2022, as well as due to the change in order book in favor of hot-rolled thick plates at Ferriera Valsider in Italy. In addition, production of long products decreased by 66 thousand tonnes – mainly as a result of production stoppages at Azovstal from the end of February 2022 and lower finished products output at Kametstal against the background of unstable electricity supplies compared to the same period last year.
There was no production of rail and pipe products, as the products were produced at the Mariupol mills.
In Q1 2023 coke output increased by 12% quarter-on-quarter, the main reason being the resumption of coke production at Kametstal after an emergency shutdown due to a lack of power supply in late November 2022. At the same time, coke output in this period decreased by 59% compared to 1Q2022 due to stoppage of production at Azovstal and AVDKHZ from the end of February 2022.
As previously reported, Metinvest in 2022 decreased steel output by 69% YoY to 2.918 million tons, iron output by 72% to 2.743 million tons, coke output by 64%, to 1.653 million tons, including marketable coke by 49%, to 811 thousand tons.
“Metinvest consists of mining and metallurgical enterprises in Ukraine, Europe and the USA.
The major shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%) that jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest group.
