In 2024, the Metinvest mining and metallurgical group reduced its rolled steel production in the UK and the EU by 13% to 1.367 million tons, which was caused by unfavorable market conditions in the EU, in particular the availability of cheap Russian slab, according to the group’s annual report.
According to the report, flat steel production at Metinvest Trametal decreased by 3% to 466,000 tons, at Ferreira Valsider by 45% to 190,000 tons, and at Spartan UK by 22% to 153,000 tons.
Overall, Trametal accounted for 34% of total production in the UK and the EU last year (31% in 2023), Ferreira Valsider for 14% (22%), Promet Steel for 41% (35%), and Spartan for 11% (12%).
As reported, in 2024, Metinvest reduced sales of finished metallurgical products by 5% compared to the previous year, semi-finished products by 3%, but increased coke sales by 6%, and sales of other products and services increased by 33%.
Revenue from the metallurgical segment remained virtually unchanged compared to 2023 and amounted to $4.824 billion, while the segment’s share in consolidated revenue decreased by 6 percentage points (pp) to 60%.
At the same time, sales of merchantable pig iron decreased by 15% to $266 million due to a 16% reduction in shipments to 558 thousand tons. In particular, the reduction in resales and production volumes of the group amounted to 12% and 52%, respectively. The share of resales in total sales increased by 4 p.p. to 95%. North America and Europe remained the main markets for this product. They accounted for 71% and 23% of total shipments last year, compared with 70% and 26% in 2023.
Sales of semi-finished products increased by 9% last year to $389 million, thanks to a 16% increase in sales volumes to 716,000 tons amid a reduction in inventories. Shipments to the Middle East and North Africa (MENA) increased by 237,000 tons, accounting for 50% of total shipments in 2024 (20% in 2023). In contrast, shipments to Europe decreased by 143,000 tons and accounted for 38% of total sales (68% in 2023). The average selling price declined in line with the dynamics of CFR Turkey square billet prices (down 7% compared to 2023).
In 2024, flat steel sales declined by 6% to $2.244 billion. This was due to lower sales prices following the dynamics of the corresponding benchmark for hot-rolled coils CFR Italy, which fell by 9%. Total shipments increased by 7% to 3.047 million tons, driven by a 26% increase in resales to 2.111 million tons, which increased their share in total shipments to 69% (up 10 percentage points). Deliveries were primarily to Europe, which accounted for 72% of the total (71% in 2023). Sales in the region increased by 193,000 tons thanks to demand from key customers, expansion of the customer base, and stable operations at Black Sea ports. Domestic sales accounted for 23% of sales (25% in 2023).
Sales of long products remained unchanged in 2024 at $948 million. Shipments increased by 5% to 1.372 million tons, primarily due to higher production volumes at Kametstal. Ukraine and Europe remained the main markets for these products. They accounted for 45% and 35% of total sales, respectively, compared with 48% and 39% in 2023. The Group increased its shipments to North America, which accounted for 17% of total sales in 2024, compared with 12% a year ago. Average sales prices declined in line with the benchmark for CFR Turkey square billets.
The report notes that in 2024, Metinvest achieved significant results from operational improvements. In particular, in the metallurgical segment, coke consumption at Kametstal was reduced and blast furnace productivity was improved thanks to the rapid adaptation of pulverized coal injection technology to alternative types of coal under military supply restrictions. In addition, the optimization of raw material procurement contributed to the positive results.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
EU, METINVEST, PRODUCTION, rolling, UK
