Business news from Ukraine

Metinvest cuts steel production by 45%

According to the results of January-June this year, Metinvest reduced steel production by 45% compared to the same period last year, to 2.412 million tonnes, according to a press release from the parent company Metinvest B.V. on Wednesday.
According to the report, the production of pig iron decreased 49%, to 2.252 million tonnes, coke fell by 55%, to 1.075 million tonnes.
At the same time, in connection with the start of a large-scale military aggression of the Russian Federation against Ukraine, from February 24, 2022, Metinvest decided to halt the manufacturing activities of its assets in Mariupol, Avdiyivka and Zaporizhia. The group’s Zaporizhia enterprises resumed their production operations later.
The group’s facilities in Mariupol and Avdiyivka have been affected by hostilities.
In the second quarter, iron and steel production amounted to 424,000 tonnes and 450,000 tonnes, respectively, which is 77% lower than in the previous quarter. In general, in the first half of 2022, the production of iron and steel amounted to 2.252 million tonnes and 2.412 million tonnes, respectively, which is 49% and 45% lower than the same period last year. The lack of production from the Mariupol steelmakers since the end of February 2022 was partly compensated by production volumes at Kamet Steel.
In addition, in the second quarter of 2022, the production of merchant semi-finished products decreased by 52% compared to the previous quarter, to 249,000 tonnes, largely due to a slump in hot metal production. In the first half of 2022, the production of merchant semi-finished products decreased by 47%, to 771,000 tonnes. This was partly compensated by the output of merchant billets at Kamet Steel, the effect of which in H1 2022 was 444,000 tonnes.
In the second quarter of 2022, the production of finished products decreased by 72% compared to the previous quarter, to 414,000 tonnes. At the same time, the production of flat products decreased by 946,000 tonnes, to 167,000 tonnes, because of the lack of production from the Mariupol steelmakers since late February 2022 and the shutdown of the Italian re-rolling plants for a scheduled maintenance in May 2022 in the absence of stable slab supplies. Production of long products decreased by 81,000 tonnes to 247,000 tonnes because of a production decline at Kamet Steel, irregular deliveries of billets from Kamet Steel to Promet Steel in Q2 2022, and the lack of production at Azovstal since the end of February 2022.
In the first half of 2022, the production of finished products decreased 46% compared to the same period last year, to 1.884 million tonnes. At the same time, the production of flat products decreased 1.658 million tonnes, to 1.281 million tonnes, the production of long products increased by 125,000 tonnes, to 575,000 tonnes following the acquisition of re-rolling facilities by Kamet Steel, which fully compensated the lack of Azovstal’s volumes since the end of February 2022 and the lower output at Promet Steel given the aforementioned reasons.
The production of rail products fell by 2,000 tonnes to 10,000 tonnes, pipe products – by 62,000 tonnes to 18,000 tonnes.
The output of the group’s coke-making assets has been affected by the war in Ukraine. Thus, in the second quarter of 2022, coke production decreased 63% compared to the previous quarter, to 292,000 tonnes, and in the first half of 2022 it fell by 55% compared to the same period last year, to 1.075 million tonnes.

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Metinvest continues to fulfill debt obligations

Metinvest B.V. (the Netherlands), the parent company of an international vertically integrated mining and metallurgical group of companies, continues to fulfill its debt obligations, including to bondholders, despite the war in Ukraine.
“At the moment, despite the war, Metinvest Group continues to fully service its debt portfolio, including issued bonds,” the company’s press service told Interfax-Ukraine in response to a corresponding request.
Earlier, the company’s information for bondholders, published on the EURONEXT exchange in Dublin on July 29 this year, provided details about the current situation in the company. In particular, they talked about the consequences for the group of the Russian military invasion of Ukraine, which adversely affected Metinvest’s business and its performance.
At the same time, it was noted that the group’s assets in Mariupol, including the production facilities of Azovstal and Illich steel mill suffered from the fighting, and the Russian armed forces temporarily occupied the city. Until the active phase of Russian military aggression ends and reliable communication channels with the metallurgical plants in Mariupol are restored, it is impossible to establish and assess the impact of military operations on them.
“However, given the ongoing occupation of Mariupol, the Board of Directors today designated Azovstal and Illich Iron and Steel Works as its unrestricted subsidiaries for each bond series,” the company’s notice states.
In addition, it is specified that after Azovstal and Illich steel mill were recognized as unrestricted subsidiaries, they are automatically and unconditionally released from their bond guarantees. At the same time, according to the terms of the bonds, the company is not obliged to contribute other subsidiaries as additional security for the bond guarantee, the notice emphasizes.

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LARGEST UKRAINIAN MINING HOLDING METINVEST CLIMBS TO 42ND PLACE AMONG GLOBAL STEEL PRODUCERS IN 2021

Metinvest, the largest Ukrainian mining and metallurgical holding, ranked 42nd in the list of the world’s top steel-producing companies in 2021 with a volume of 11.48 million tonnes compared to 45th place in 2020, when it produced 10.16 million tonnes.
According to the annual publicationfrom the World Steel Association (Worldsteel), China Baowu Group became the largest steel company at the end of last year with 119.95 million tonnes (in 2020 it was 115.29 million tonnes), ArcelorMittal with 79.26 million tonnes (in 2020 – 78.46 million tonnes) is in second place.
They are followed by Ansteel Group with 55.65 million tonnes, Nippon Steel with 49.46 million tonnes (41.58 million tonnes) and Shagang Group with 44.23 million tonnes (41.59 million tonnes).
There are no Ukrainian companies in the list of the 50 top steel-producing companies at the end of 2021, as well as at the end of 2014-2020, except for Metinvest.
Among Russian companies, NLMK was 21st with 17.29 million tonnes (at the end of 2020 it was in 22nd place with 15.75 million tonnes), Magnitogorsk Iron and Steel Works was 32nd with 13.59 million tonnes (37th with 11 .57 million tonnes), Evraz group was in 34th place with 13.57 million tonnes (30th place with 13.63 million tonnes), Severstal was 40th with 11.65 million tonnes (40th place with 11.31 million tonnes).
According to Worldsteel, Ukraine produced 21.4 million tonnes of steel in 2021 and was 14th among major steel-producing countries (in 2020 it was 12th place with 20.6 million tonnes), the volume of pig iron production amounted to 21.2 million tonnes (20. 4 million tonnes), while last year the country exported 3.2 million tonnes (3.1 million tonnes) of pig iron, the apparent consumption of pig iron in Ukraine amounted to 17.9 million tonnes (17.3 million tonnes). Apparent steel use in Ukraine in 2021 amounted to 4.8 million tonnes (4.6 million tonnes in 2020), while use per capita reached 110.3 kg (in 2020 it was 105.2 kg per capita).
On average, in the world in 2021, the apparent use of steel amounted to 232.8 kg per capita. (229 kg per capita), the best indicators are in South Korea 1075.6 kg per capita. (955 kg per capita), Taiwan 885.6 kgper capita (789 kg per capita), Czech Republic 775.5 kg per capita. (624.3 kg per capita), China 666.5 kg per capita. (699.2 kg per capita), Japan 456.2 kg per capita. (416.1 kg per capita) and Austria 516.9 kg per capita. (405.2 kg per capita).
At the end of 2021, Ukraine took 10th place in the world ranking of major exporters of steel, having sold 15.7 million tonnes of steel products on foreign markets (in 2020 it was in 9th place with 15.2 million tonnes), China ranked first 66.2 million tonnes (51.4 million tonnes), Japan was in 2nd place with 33.8 million tonnes.
At the same time, in the ranking of net exporters, Ukraine ranked fifth in the world with a volume of 14.4 million tonnes (in 2020 it was in the fourth place with 13.9 million tonnes), China was the first with 38.4 million tonnes (fifth place with 13.5 million tonnes), Japan was second with 28.3 million tonnes (second with 24.8 million tonnes).
The largest metal importers last year were EU (27) with 48.1 million tonnes, the United States with 29.7 million tonnes and China with 27.8 million tonnes.
In the ranking of net importers in 2021, the leaders are the EU (27) with 22 million tonnes, the United States with 21.4 million tonnes and Thailand with 13.7 million tonnes.

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LARGEST UKRAINIAN MINING AND METALLURGICAL HOLDING METINVEST REDUCES STEEL PRODUCTION IN Q1

Metinvest, the largest Ukrainian mining and metallurgical holding, in January-March this year reduced steel production by 8% compared to the same period last year and by 25% compared to the previous quarter – to 1.962 million tonnes, according to a press release from the parent company Metinvest B.V.
According to the report, production of pig iron decreased by 15% and 31% respectively – to 1.828 million tonnes, coke – by 33% and 28% respectively, to 783,000 tonnes.
Metinvest added that in January-March this year, the group reduced the total production of iron ore concentrate by 3% compared to the same period last year and by 10% compared to the previous quarter, to 2.786 million tonnes.
The output of pellets amounted to UAH 1.281 million, which is 35% less than in Q1 2021, but 34% more than in the previous quarter, while the output of coking coal concentrate in the first quarter of this year increased by 29% compared to Q1 2021, but decreased by 14% from Q4 2021 – to 1.276 million tonnes.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore, coal mining and coke production to the production of semi-finished products and finished products from steel, pipes and coils, as well as production of other high value-added products. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the United States, has a sales network covering all key global markets.
Metinvest’s main 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.

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LARGEST UKRAINIAN MINING AND METALLURGICAL HOLDING “METINVEST” IN FIRST QUARTER REDUCES PRODUCTION OF TOTAL CONCENTRATE

Metinvest, the largest Ukrainian mining and metallurgical holding, in January-March this year reduced the production of total iron ore concentrate (IRC) by 21% compared to the same period last year and by 20% quarter-on-quarter to 6.128 million tons.
According to a press release from parent company Metinvest B.V. on operating results for the first quarter of 2022, the decrease in concentrate output was due to the start of full-scale hostilities on the territory of Ukraine, which, in turn, led to logistical restrictions against the backdrop of blocking Black Sea ports, as well as a sharp decrease in intragroup consumption by Mariupol plants.
According to the results of January-March of the current year, the group reduced the production of marketable iron ore products by 16% compared to the same period last year – to 4.067 million tons, which corresponded to the output in the previous quarter.
During this period, Metinvest reduced the production of pellets by 35% compared to the same period last year, to 1.281 million tons, mainly due to a sharp decrease in intra-group consumption, optimization of the portfolio of orders at the Northern Mining and Processing Plant. However, compared to the previous quarter, their output increased by 34% due to a scheduled overhaul of the roasting machine at the Central Mining and Processing Plant in the 4th quarter of 2021.
Salable concentrate production decreased by 10% to 2.786 million tons, mainly due to lower production at Inguletsky GOK.
In the first quarter of 2022, the total production of coking coal concentrate decreased by 14% to 1.276 million tons as a result of a decrease in production by the Pokrovskaya Coal Group due to a decrease in the number of personnel and disruption of supply chains after the outbreak of hostilities in Ukraine. By the first quarter of 2021, growth was 29% due to the consolidation of the Pokrovskaya Coal Group.
The production of coal concentrate at the mines of the United Coal Company (USA) in Q1-2022 decreased by 85 thousand tons compared to Q1-2021 due to the deterioration of geological conditions.
As reported, according to the results of 2021, Metinvest increased the total production of iron ore concentrate (IRO) by 3% compared to the previous year – up to 31.341 million tons, pellets by 18% – up to 5.811 million tons and the total production of coking coal concentrate – by 92 %, up to 5.542 million tons.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore and coal mining and coke production to the production of semi-finished products and finished products from steel, pipes and coils, as well as the production of other high value-added products. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA, has a sales network covering all key global markets.

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METINVEST REDUCED PRODUCTION OF STEEL, PIG IRON, COKE IN FIRST QUARTER

“Metinvest”, the largest Ukrainian mining and metallurgical holding, in January-March of this year, reduced steel production by 8% compared to the same period last year, and by 25% compared to the previous quarter – to 1.962 million tons, n pig iron – by 15% and 31%, to 1.828 million tons, the total production of coke – by 33% and 28%, respectively, to 783 thousand tons.
According to a press release from parent company Metinvest B.V. on operating results for the first quarter of 2022, in January-March of this year, the group reduced the total production of iron ore concentrate (IOR) by 3% compared to the same period last year and by 10% quarter-on-quarter to 2.786 million tons, pellets by 35% and increased by 34%, respectively – up to 1.281 million tons, the total production of coking coal concentrate – increased by 29% and reduced by 14%, respectively, to 1.276 million tons.
As reported, according to the results of 2021, Metinvest increased steel production by 15% compared to 2020 – up to 9.533 million tons, pig iron – also by 15%, up to 9.709 million tons, but reduced the total production of coke by 5% – to 4.551 million tons. In 2021, Metinvest increased the total production of iron ore concentrate (IRO) by 3% compared to the previous year – up to 31.341 million tons, pellets by 18% – up to 5.811 million tons and the total production of coking coal concentrate – by 92%, up to 5.542 million tons.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore and coal mining and coke production to the production of semi-finished products and finished products from steel, pipes and coils, as well as the production of other high value-added products. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA, has a sales network covering all key global markets.
Metinvest’s main shareholders are the SCM group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of the Metinvest group.

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