Metinvest, the largest Ukrainian mining and metallurgical holding, in January-June this year increased crude steel production by 10% compared to the same period last year, to 4.358 million tonnes, cast iron – by 8%, to 4.405 million tonnes, but reduced total coke production by 0.2%, to 2.368 million tonnes.
According to a press release of parent company Metinvest B.V. on the results of operation in H1 2021 published on Wednesday, In 2Q 2021, Metinvest’s hot metal output climbed by 5% q-o-q to 2.254 million tonnes. This was driven by growth in Azovstal’s production of 107,000 tonnes following brief maintenance and repair work on blast furnaces in March because of the planned overhaul of basic oxygen furnace (BOF) No. 1 that month.
In 2Q 2021, the Group’s crude steel output rose by 5% q-o-q to 2.229 million tonnes because of an increase in Azovstal’s volumes of 130,000 tonnes amid greater hot metal production at the plant. Meanwhile, Illich Steel’s output decreased by 30,000 tonnes because of the scheduled overhaul of BOF no. 3 in May.
In H1 2021 hot metal and steel output grew thanks to an increase in production at the two Mariupol-based works.
In 2Q 2021, the Group’s output of merchant semi-finished products dropped by 10% q-o-q to 687,000 tonnes. Merchant slab production fell by 91,000 tonnes because of the allocation of slabs to make more flat products. Meanwhile, pig iron output edged up by 13,000 tonnes.
In 1H 2021, Metinvest’s production of merchant semi-finished products decreased by 4% y-o-y to 1.452 million tonnes. Merchant slab production declined by 131,000 tonnes because of the redistribution of slabs to flat product rolling. Pig iron production rose by 66,000 tonnes, mainly because of an increase in hot metal output.
In 2Q 2021, the Group’s output of finished products climbed by 9% q-o-q to 1.819 million tonnes.
In 1H 2021, Metinvest’s production of finished products surged by 22% y-o-y to 3.481 million tonnes.
In 2Q 2021, the Group’s coke output totalled 1.198 million tonnes, up 2% q-o-q, mainly because of an increase in production at Avdiivka Coke following the overhaul of coke oven battery No. 6 in the beginning of this year. In 1H 2021, coke output remained flat y-o-y at 2.368 million tonnes. The effect of the consolidation of production volumes of Dnipro Coke since April 2020 (124,000 tonnes) was almost completely offset by decreases in production at Avdiivka Coke of 81,000 tonnes and Azovstal of 46,000 tonnes.
PJSC Energomashspetsstal (Donetsk region), owned by Russia’s Atomenergomash (Rosatom State Corporation), in January-July this year reduced steel production, according to recent data, by 20.5% compared to the same period last year, to 31,000 tonnes.
A source in the industry told Interfax-Ukraine that 2,000 tonnes of steel were produced in July.
As reported, Energomashspetsstal in 2020 increased steel production by 6.8% compared to the previous year, to 63,000 tonnes.
Energomashspetsstal is the largest Ukrainian manufacturer of special cast and forged products of individual and small-scale production for metallurgy, shipbuilding, energy (wind, steam, hydro, nuclear) and general mechanical engineering.
DONETSK, DONETSK REGION, ENERGOMASHSPETSSTAL, STEEL, STEEL PRODUCTION
Metinvest Mining and Metallurgical Group through PrJSC Dniprovsky Coke and Chemical Plant (DKHZ, Kamianske, Dnipropetrovsk region), part of the group, will acquire an integral property complex of Dniprovsky Integrated Iron & Steel Works (DMK, Kamianske, Dnipropetrovsk region) for UAH 9.17 billion with a starting price of UAH 8.395 billion.
According to the information on the ProZorro.Sales platform, bids were accepted until July 25 inclusive, the auction was scheduled for July 26, but since one bid was submitted for the competition, the winner was determined without bidding.
Earlier, Interfax-Ukraine was informed that Metinvest would acquire DMK through its company, DKHZ.
DMK was undergoing reorganization as part of the bankruptcy proceedings of the enterprise.
Ukrainian metallurgical enterprises are expected to increase steel production by 6% by the end of 2021 year-over-year, to 21.894 million tonnes.
According to the background documents of the Economy Ministry, which are available to Interfax-Ukraine, the production of general rolled products will increase by 5%, to 19.411 million tonnes, cast iron smelting by 6%, to 21.727 million tonnes.
The forecast is based on production indicators for January-June 2021, summarized by the Ukrmetallurgprom association, the ministry said.
At the same time, the agency’s source said that if the existing trends continue, the supply of scrap metal to metallurgical enterprises in 2021 will increase by 14%, to 3.31 million tonnes.
The output of pipes in 2021 may increase by 12%, to 957,000 tonnes, coke by 3%, to 9.927 million tonnes, firebricks by 9%, to 240,000 tonnes (119,000 tonnes were produced over six months of 2021, growth is 9%).
Sinter output may increase by 7%, to 34.207 million tonnes.
Ukrainian metallurgical enterprises increased the production of general rolled products, according to recent data, by 6.6% in January-June this year compared to the same period last year, to 9.625 million tonnes.
According to the report of the Ukrmetalurgprom association, in the first five months of the year steel production grew by 7.5%, to 10.859 million tonnes, while cast iron output increased 8.1%, to 10.79 million tonnes.
In June, 1.602 million tonnes of rolled metal, 1.872 million tonnes of steel, and 1.887 million tonnes of cast iron were produced.
As reported, in 2020, Ukrainian metallurgical enterprises increased the production of general rolled products by 0.7% compared to the previous year, to 18.344 million tonnes, reduced steel output by 1.4%, to 20.549 million tonnes and increased cast iron production by 1.5%, to 20.358 million tonnes.
Metinvest, an international vertically integrated mining and metallurgical group of companies, will act as the general partner of the international forum “Decarbonization of the Steel Industry: a Challenge for Ukraine,” which will be held in Kyiv on July 14, 2021.
According to the company’s press release, an event on the topic that has been discussed by the entire international community in recent years will be held in Ukraine for the first time.
As noted, for many years of operation, Metinvest has been striving to reduce the negative impact of production on the environment. Over the past 10 years, the group has allocated more than $ 3.4 billion for environmental initiatives and is committed to further reducing its carbon footprint to combat climate change.
Meanwhile, achieving carbon neutrality will be a big challenge for Ukrainian companies, as it involves a complete change in production processes and supply chains. In addition, the necessary technologies that will make the country’s economy carbon-free are only at the research stage. To develop a detailed roadmap for the transition to a “green” industry requires interaction between manufacturers, engineering companies, consumers, suppliers and the government.
Yuriy Ryzhenkov, the director general of Metinvest, stressed that the industry is facing a serious task that will affect the life of the entire country.
“Decarbonization can completely change both production and technologies. The sooner business and the state develop a unified approach to achieving carbon neutrality, the easier this process will be for the Ukrainian economy,” the top manager stated.
The forum is organized by GMK Center, an information-analytical and consulting company working in the field of metallurgy and industry. At the forum it is planned to discuss issues related to decarbonization of steel production, existing and promising technologies, plans of companies to reduce CO2 emissions and interaction with the state in this direction. The event will be attended by the representatives of mining and metallurgical companies, international engineering, consulting and R&D companies, as well as government officials, business associations and industry experts.
