Mechel, one of the leading Russian mining and steel groups, has announced its production and sales results for the first quarter of 2024.
Accordingly, in the first quarter, Mechel produced 758,000 mt of crude steel, 12.1 percent lower compared to the fourth quarter last year. Meanwhile, the company’s pig iron production in the given period decreased by 11.9 percent quarter on quarter to 701,000 mt. Production of run-of-mine coal totaled 2.5 million mt, down 13.8 percent quarter on quarter.
In the given quarter, Mechel’s coking coal concentrate sales rose by 7.5 percent quarter on quarter to 930,000 mt, with sales to third parties increasing by 29.0 percent quarter on quarter to 657,000 million mt during the given period.
The company’s thermal coal sales totaled 869,000 mt in the first quarter, up 52.7 percent compared to the fourth quarter last year. In the first quarter, the company’s shipments of iron ore concentrate fell by 28.5 percent quarter on quarter to 185,000 mt, due to the reduction in production volumes in the Korshunovsky quarry.
The company’s sales of coke went down by 21.1 percent quarter on quarter to 451,000 mt in the first quarter due to weakening market demand, as well as a temporary reduction in the Chelyabinsk Metallurgical Plant's need for raw materials, while the company’s sales of ferrosilicon were at 19,000 mt.
In the given period, the company’s total sales of long steel products increased by 2.1 percent quarter on quarter to 582,000 mt due to increased supplies of rebar to the domestic market ahead of the summer construction season, and sales of flat steel products totaled 88,000 mt, up six percent quarter on quarter due to the signing of a number of new contracts in the domestic market.