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Russia’s Mechel sees lower crude steel and pig iron outputs in Q3 amid BF overhaul

Friday, 24 November 2023 11:18:05 (GMT+3)   |   Istanbul
       

Mechel, one of the leading Russian mining and steel groups, has announced its production and sales results for the third quarter and the first nine months of the current year.

Accordingly, in the third quarter this year, Mechel produced 839,000 mt of crude steel, 4.7 percent lower compared to the second quarter. Meanwhile, the company’s pig iron production in the third quarter this year decreased by 3.6 percent quarter on quarter to 753,000 mt. The given decreases were due to the overhaul of Chelyabinsk Metallurgical Plant’s blast furnace No. 5. Meanwhile, the production of run-of-mine coal totaled 2.85 million mt, up 17.4 percent quarter on quarter. Meanwhile, in the first nine months, the company produced 2.62 million mt of crude steel, down by two percent year on year, while its pig iron production decreased 2.1 percent year on year to 2.37 million mt. The company’s production of run-of-mine coal output totaled 7.38 million mt, down 15.8 percent year on year.

In the third quarter of the current year, Mechel’s coking coal concentrate sales rose by 43.2 percent quarter on quarter to one million mt, with sales to third parties increasing by 139.2 percent quarter on quarter to 732,000 million mt during the given period. In the January-September period, the company’s coking coal concentrate sales fell by 28 percent year on year to 2.25 million mt, with sales to third parties decreasing by 30.5 percent year on year to 1.36 million mt during the given period.

The company’s thermal coal sales totaled 508,000 mt in the third quarter, down by 6.6 percent compared to the second quarter. Mechel’s thermal coal sales in the first nine months totaled 1.75 million mt, down by 28.7 percent year on year.

In the third quarter of the current year, the company’s shipments of iron ore concentrate fell by 66.5 percent quarter on quarter to 117,000 mt. The company’s shipments of iron ore concentrate in the first nine months decreased by 42.4 percent to 770,000 mt.

The company’s sales of coke went down by 4.3 percent quarter on quarter to 531,000 mt in the third quarter of the current year, while in the January-September period this year Mechel’s sales of coke decreased by 1.9 percent to 1.64 million mt. Meanwhile, the company’s sales of ferrosilicon in the third quarter of the current year fell by 19 percent quarter on quarter to 17,000 mt, due to the end of deliveries under a major export contract.

In the first nine months, the company’s total sales of long steel products decreased by 6.9 percent year on year to 1.83 million mt and sales of flat steel products totaled 209,000 mt, down 4.6 percent year on year.


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