LKAB reduced iron ore production by 12% y/y in January-September

In January-September 2024, the international mining group LKAB reduced its production of iron ore by 12% compared to the same period in 2023, to 16.9 million tons. This is stated in the company’s quarterly report.

Shipments of raw materials to customers for 9 months decreased by 19.1% y/y – to 15.2 million tons. The share of pellets in total sales amounted to 88% compared to 85% a year earlier.

In the third quarter, LKAB reduced its production of iron ore products by 30% year-on-year – to 4.9 million tons. Shipments of raw materials amounted to 5.9 million tons, down 6.3% y/y.

“The third quarter was marked by major production disruptions and several long production stoppages. Nevertheless, high inventory levels helped keep shipments from falling sharply. Maintenance activities will continue in the fourth quarter,” the company said in a statement.

The company also noted a decline in demand and prices for iron ore during the quarter, which is a consequence of uncertainty about global economic development and the outlook for the steel industry.

“We are witnessing a continuation of the production disruptions that started in the second quarter and will continue throughout the fourth quarter. This has a significant impact on the company’s production volumes. It is extremely important that we still implement the large-scale modernization measures we have started if we want to achieve production stability, which is the basis for profitability,” says Jan Mostrom, President and CEO of LKAB.

As GMK Center reported earlier, in 2023, LKAB increased its production of iron ore by 4.8% compared to 2022, to 26.2 million tons. Shipments of iron ore to consumers amounted to 25.3 million tons, down 1.9% y/y.

LKAB is a Swedish state-owned mining company specializing in the extraction and processing of iron ore. It is one of the world’s largest iron ore producers, especially known for its underground mines in Kiruna and Malmberg. The main consumers of its products are steel mills in the EU. As the company is actively investing in green steel production technologies, its products are also of interest to international markets seeking to reduce CO2 emissions.