Mechel, one of the leading Russian mining and steel groups, has announced that in the fourth quarter of 2015 its crude steel output decreased by one percent to 1.01 million mt, while its pig iron output also fell by one percent to one million mt, both quarter on quarter. Mechel's run-of-mine coal production in the fourth quarter declined by three percent compared to the third quarter to 5.77 million mt.
In 2015, the company's crude steel output amounted to 4.32 million mt, rising one percent, while its pig iron output increased by three percent to 4.06 million mt, both year on year.
In the fourth quarter, Mechel’s coking coal concentrate sales amounted to 2.01 million mt of, down six percent compared to the previous quarter, while its coking coal concentrate sales in 2015 decreased by 19 percent year on year to 8.2 million mt.
Mechel stated that in 2015 the devaluation of the ruble had a positive impact on mining costs and helped the company’s enterprises consolidate their position as compared to their competitors and the company’s production results improved, while mining at the Elga deposit more than tripled. Meanwhile, in the same year, the decrease in Mechel’s coking coal concentrate sales to China was partly compensated by reorienting the sales to the domestic market where the price dynamics were more attractive. The company also increased sales of coking coal concentrate to other Asian countries like Japan and Indonesia.