Metinvest reduced iron ore concentrate production by 17% q/q in Q3

Metinvest Group reduced its production of iron ore concentrate (total) by 17% quarter-on-quarter to 3.35 million tons in Q3 2024. This is stated in the company’s quarterly report.

Production of iron ore products for the period amounted to 3.23 million tons (-15% q/q), including 1.85 million tons of concentrate (-16% q/q) and 1.38 million tons of pellets (-14% q/q).

“In March-July 2024, Ukraine faced power supply restrictions due to Russian shelling and high demand for imported electricity. Since August, the situation has stabilized, but the unfavorable conditions on the iron ore market have led to a decline in production. The group’s mining and processing plants continued to operate at varying levels of capacity, taking into account the availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production,” the statement said.

The production of coal concentrate (total) for this period increased by 14% q/q – to 1.13 million tons. The main factor was a 17% q/q increase in production at Pokrovske Coal Group to 658 thousand tons. Despite the proximity to the frontline, the company continues to operate, commissioning additional longwalls and increasing coking coal production.

“Intense fighting and massive shelling continue in the area. The management is closely monitoring the situation and taking all possible measures to minimize any potential negative consequences for the group,” the company said.

Steel production decreased by 1% q/q – to 568 thousand tons, while pig iron production remained at the level of the third quarter of 2023 (483 thousand tons). Production of commercial steel products amounted to 742 thousand tons, down 9% quarter-on-quarter, including: semi-finished products – 251 thousand tons (+20% q/q), rolled products – 491 thousand tons (-19% q/q). Coke production for the quarter remained at the level of the previous quarter – 282 thousand tons.

In January-September 2024, Metinvest increased its production of iron ore concentrate by 63% y/y – to 12.24 million tons, coal concentrate by 5% y/y – to 3.22 million tons, and coke by 11% y/y – to 846 thousand tons.

Steel production for 9 months increased by 5% y/y – to 1.61 million tons and pig iron by 2% y/y – to 1.37 million tons. Production of commercial steel products decreased by 3% y/y – to 2.3 million tons, including semi-finished products by 5% y/y – to 626 thousand tons and rolled products by 3% y/y – to 1.68 million tons.

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 safety, staff availability, electricity supply, as well as logistics and economic factors.

As GMK Center reported earlier, in 2023, Metinvest reduced steel production by 31% compared to 2022, to 2.025 million tons. 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).