Press Room

Metalloinvest announces operational results for Q2 2019

31 July 2019

Metalloinvest, a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, today announces its operational results for the second quarter of 2019.

Management comments

Andrey Varichev, CEO of Management Company Metalloinvest, commented:

In line with our strategy to increase the share of high value-added products in the output, in Q2 2019 the Company increased pellet production and shipments by 6% and 7%, respectively, compared to the previous quarter. As a result, the share of HVA iron ore products, comprising pellets and HBI/DRI, increased to 75% of our total iron ore product shipments. At the same time, sales of iron ore products to Asia significantly increased in Q2 2019 and reached 16% of total iron ore product shipments, rising from 11% in Q1 2019. The share of HVA products in steel shipments continues to gradually increase and was recorded at 46%, with the main market being domestic customers.

Iron ore products


  • In Q2 2019, iron ore production remained almost flat as compared to Q2 2018 (-0.6% y-o-y ) and amounted to 10.1 mn tonnes. At the same time, the growth in production volumes by 4.8% q-o-q was driven by an increase in productivity due to the processing of higher quality ore and the completion of scheduled maintenance works
  • In Q2 2019, pellet production increased by 3.9% y-o-y and 5.7% q-o-q and amounted to 7.2 mn tonnes. The growth in pellet production was due the completion of scheduled maintenance works, as well as an increase in productivity due to a change in the pellet product mix
  • HBI/DRI production remained flat q-o-q (2.0 mn tonnes) and was 1.6% higher y-o-y mainly due an increase in productivity of the Companys HBI plants


  • In Q2 2019, the total volume of iron ore product shipments to third parties remained flat q-o-q and amounted to 6.2 mn tonnes
  • HVA iron ore product (pellets and HBI/DRI) shipments increased to 75% of the total amount of iron ore product shipments in Q2 2019, compared with 74% in Q1 2019 and 72% in Q2 2018
  • In Q2 2019, the share of iron ore product shipments to the domestic market amounted to 53%, compared with 57% in Q1 2019 and 67% in Q2 2018
  • The Company increased the volume of export supplies during the reporting period by 9.7% q-o-q and 35.8% y-o-y mainly due to the increase in supplies to Asia (the share of shipments to Asia comprised 16% in Q2 2019, compared with 11% in Q1 2019 and 1% in Q2 2018)

Pig iron and steel products


  • In Q2 2019, the output of hot metal remained almost flat q-o-q (+0.9%) and amounted to 0.7 mn tonnes. The Company decreased hot metal production by 7.2% y-o-y as a result of maintenance and repair works at Ural Steel in Q2 2019
  • Crude steel production increased in Q2 2019 by 5.1% q-o-q to 1.2 mn tonnes. This growth was largely a result of plant reconstruction and hot tests of FMF at Ural Steel in Q1 2019. Crude steel output was decreased by 1.1% y-o-y due to the development of FMF steel production technology


  • In Q2 2019, pig iron shipments to third parties decreased to 0.4 mn tonnes compared with 0.5 mn tonnes in Q1 2019, partly owing to the growth of internal consumption for steel production
  • The share of HVA steel product shipments amounted to 46.0% in Q2 2019, compared with 45.5% in Q1 2019 and 44.6% in Q2 2018
  • In Q2 2019, pig iron and steel product shipments was partially reoriented to the Russian market (its share increased to 34%, compared with 29% in Q1 2019 and 28% in Q2 2018), mainly due to an increase in shipments to ChelPipe. Thus, export shipments of pig iron and steel product in Q2 2019 decreased by 12.6% q-o-q and 16.7% y-o-y

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Anton Troshin

Anton Troshin

Corporate Communications Director
Tel.: +7 (495) 981-55-55

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