Metinvest Mining and Metallurgical Group sold 55% of its steel and mining products in the European Union (EU) in January-June 2023.
According to the company’s presentation at the 15th J.P. Morgan Global Emerging Markets Corporate Conference, during this period, Metinvest sold 35% of its steel products in Ukraine, 2% in MENA, 1% in the CIS and 7% in other regions for a total of $2.423 billion.
In addition, the Group sold 28% of its iron ore products in Ukraine, 10% in Asia, and 7% in other regions for a total of $1.131 billion.
At the same time, in 1H2022, Metinvest sold 48% of its steel products in the EU (50% in 2H2022), 28% (35%) in Ukraine, 13% (4%) in MENA, 6% (1%) in the CIS and 5% (10%) in other regions for a total of $3.603 billion ($2.113 billion).
In addition, the company’s share of sales of iron ore products in the first half of 2022 in the EU amounted to 45% (60% in the second half of 2022), in Ukraine – 20% (27%), in Asia – 19% (2%), in other regions – 15% (11%) for a total of $1.669 billion ($903 million).
The presentation states that sales of steel products in 1H2023 decreased by 33% year-on-year, mainly due to a 54% and 56% decrease in pig iron and flat products production at Ukrainian steelmakers amid a lack of slab sales and a decline in average selling prices. This was partially offset by increased supplies of billets (up 3%) and long products (up 14%), as well as coke (up 10%), with higher resale volumes.
The positive six-month trend in 1H2023 compared to 2H2022 (up 15%) was driven by higher sales volumes of all products, including finished products (up 22%), semi-finished products (up 7%) and coke (up 18%).
At the same time, logistical challenges continued to shape the geography of sales.
Sales of iron ore products in 1H2023 decreased by 32% compared to 1H2022, mainly due to a 44% drop in iron ore prices and reduced supplies due to the blockade of Ukrainian Black Sea ports, as well as lower intragroup consumption and a drop in local demand. The results were also affected by the negative dynamics of prices for iron ore with an iron content of 62%. This was partially offset by an increase in sales of pellets and coking coal concentrate by 43% and 42%, respectively. This resulted in significant changes in regional revenue shares.
At the same time, compared to the second half of 2022, there was a positive trend (up 25%), primarily due to an increase in sales of all products, namely pellets (up 2.1 times), iron ore concentrate (up 56%) and coking coal concentrate (up 13%).
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
