Metinvest cut steel production by 31% y/y in 2023

Pig iron production decreased by 36% y/y

Metinvest Group reduced steel production by 31% in 2023 compared to 2022, to 2.025 million tons. This is evidenced by the company’s data published on its official website.

Pig iron production for the year amounted to 1.76 million tons, down 36% compared to 2022, iron ore concentrate (total) – 11.09 million tons (+4% y/y), and coal (total) – 5.45 million tons (+10% y/y).

In the fourth quarter of 2023, Metinvest’s enterprises reduced steel production by 1% quarter-on-quarter – to 494 thousand tons and pig iron production by 1% quarter-on-quarter – to 422 thousand tons. Iron ore concentrate production increased by 29% q/q – to 3.58 million tons, while coal concentrate production decreased by 11% q/q – to 1.14 million tons.

«In the fourth quarter, pig iron and steel production remained almost at the level of the previous quarter as Kametstal operated two blast furnaces in both quarters. In 2023, pig iron and steel production, which declined sharply as a result of the shutdown of Mariupol’s plants from the end of February 2022, was partially offset by increased production at Kametstal, including as a result of the stabilization of the electricity supply situation from the end of January 2023,» the statement said.

The output of steel products (semi-finished and finished products) last year decreased by 18% y/y – to 3.12 million tons. In particular, the production of semi-finished products fell by 19% y/y – to 832 thousand tons, of which 811 thousand tons were billets (+25% y/y) and 21 thousand tons (-90% y/y) were pig iron. Rolled steel production decreased by 18% y/y – to 2.29 million tons.

In the fourth quarter, Metinvest reduced its steel output by 1% yoy to 737 thousand tons. Semi-finished products output increased by 10% yoy to 175 thousand tons, while rolled steel output decreased by 4% yoy to 562 thousand tons.

Total coke production last year decreased by 25% compared to 2022 – to 1.24 million tons. Commercial coke production amounted to 859 thousand tons, up 6% y/y. In the fourth quarter, the figures decreased by 2% and 1%, respectively, to 293 thousand tons and 214 thousand tons.

«In Q4 2023, coke production remained almost at the level of the previous quarter. In 2023, the figure decreased by a quarter due to the suspension of production at Azovstal and Avdiivka Coke since the end of February 2024,» the company said.

Commercial iron ore production for the year increased by 18% y/y – to 9.35 million tons, including a 14% y/y decrease in concentrate – to 4.07 million tons and a 66% y/y increase in pellets – to 5.28 million tons.

«Since August 2023, a sea corridor for merchant ships sailing through the Black Sea from or to Ukraine has been operating, which, among other things, has led to the resumption of the export route for the sea transportation of mining and metallurgical products. This allowed the Group to start gradually increasing the capacity utilization of its mining and processing plants. In particular, we increased production at Ingulets Mining and Northern Mining and increased the use of third-party ore for concentrate production at Central GOK,» Metinvest added.

As GMK Center reported earlier, Metinvest Group reduced steel production by 69% year-on-year – to 2.92 million tons in 2022. Pig iron production fell by 72% y/y – to 2.74 million tons. Iron ore concentrate production amounted to 10.71 million tons (-66% y/y).