Metinvest cuts steel production by 5% q/q in Q1

Production of iron ore concentrate increased by 36% q/q

Metinvest Group reduced its steel production by 5% quarter-on-quarter to 469 thousand tons in Q1 2024. The figure fell by 4% compared to the same period in 2023. This is evidenced by the company’s data published on its official website.

Pig iron production in January-March amounted to 403 thousand tons, down 5% q/q and 10% y/y. Production of iron ore concentrate (gross) increased by 36% q/q and 2.1 times y/y – to 4.86 million tons, while coal concentrate (gross) fell by 4% q/q and 26% y/y – to 1.09 million tons. Coke production decreased by 3% q/q and 11% y/y – to 283 thousand tons.

Production of steel products (semi-finished and finished products) for the first quarter increased by 2% q/q – to 750 thousand tons. Compared to January-March 2023, the figure fell by 9%. In particular, the production of semi-finished products decreased by 5% q/q and 41% y/y – to 166 kt, while finished products increased by 4% q/q and 8% y/y – to 584 kt.

«Production of pig iron and semi-finished products decreased mainly due to the shutdown of blast furnace No. 9 at Kamet Steel in March for scheduled overhaul, and coke production was down due to the shutdown of some coking chambers at coke oven battery No. 1,» the company said.

Production of merchant iron ore products increased by 41% q/q and 2.3 times y/y – to 4.4 million tons. In particular, the company produced 2.82 million tons of concentrate (+53% q/q; +4 times y/y) and 1.58 million tons of pellets (+23% q/q; +31% y/y).

«Since August 2023, a sea corridor for merchant ships sailing through the Black Sea from or to Ukraine has been in operation, which, among other things, has led to the resumption of the export route for the sea transportation of iron and steel products. This allowed the company to gradually increase the capacity utilization of its mining and processing plants. In particular, production at Ingulets Mining and Northern Mining was increased, as well as the use of third-party ore for concentrate production at Central Mining,» the statement said.

In general, Metinvest’s Ukrainian enterprises (except for those located in Mariupol and Avdiivka) continue to operate at varying levels of utilization, taking into account security, personnel availability, power supply, logistics and economic factors.

As GMK Center reported earlier, Metinvest reduced steel production by 31% year-on-year – to 2.025 million tons in 2023. Pig iron production for the year amounted to 1.76 million tons, down 36% compared to 2022, iron ore concentrate (gross) – 11.09 million tons (+4% y/y), and coal (gross) – 5.45 million tons (+10% y/y).