Metinvest’s Minings increased production of pellets by 48% y/y in January-September

Production of iron ore concentrate decreased by 49% y/y in 9 months

In January-September 2023, Metinvest Group’s mining and processing plants increased pellet production by 48% compared to the same period in 2022 – to 3.99 million tons. This is stated in the company’s report.

During the period, no pellets with an iron content of less than 65% were produced. Pellets with more than 65% iron content accounted for the entire volume of production.

In January-September, Metinvest’s production of iron ore concentrate decreased by 49% year-on-year – to 2.23 million tons. Concentrate with an iron content of over 67% accounted for the bulk of production, amounting to 2.04 million tons (-28% yoy).

Overall, the output of iron ore products decreased by 12% y/y – to 6.22 million tons over 9 months. Production of total iron ore concentrate amounted to 7.51 million tons (-23% yoy).

In the third quarter, Metinvest’s mining and processing plants produced 1.43 million tons of pellets (+7% q/q) and 746,000 tons of marketable concentrate (-5% q/q). Total production of marketable iron ore products increased by 3% q/q – up to 2.18 million tons. Production of total iron ore concentrate reached 2.77 million tons, which is 13% more compared to the previous quarter.

«In the third quarter, production of total iron ore concentrate increased by 13% quarter-on-quarter due to higher production at all three Minings. The production of merchant iron ore products increased by 3%, with almost all of these products being produced with a high iron content. Due to a shift in the order book in favor of pellets, pellet production increased by 7%, while saleable concentrate production decreased by 5%,» the report says.

As GMK Center reported earlier, currently Metinvest Group’s steel enterprises are operating at 65-75% of their capacity. Due to the impossibility of transporting raw materials by sea, the company is forced to significantly reduce the loading of the Kryvyi Rih Mining.

Also, Metinvest in January-September 2023 reduced steel production by 43% compared to the same period in 2022 – to 1.53 million tons. Pig iron smelting during this period amounted to 1.34 million tons, which is 46% less y/y.