Operational Results for 9M 2019
6 November 2019
Metalloinvest (the “Company”), 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 first nine months of 2019.
Andrey Varichev, CEO of Management Company Metalloinvest, commented:
"The Company recorded a year-on-year increase in production volumes of all iron ore products during the first nine months of 2019. Shipments of iron ore products (including concentrate, pellets and HBI/DRI) increased by 1.5%. Meanwhile, the share of high value-added products (pellets and HBI/DRI) comprised 73% of the total amount of iron ore product shipments. In the third quarter of 2019, the Company launched fine screening technology at Mikhailovsky GOK as part of the implementation of the comprehensive program of strategic development aimed to improve product quality. This technology has previously been successfully implemented at Lebedinsky GOK. The use of fine screening technology will enable the Company to increase premium-quality pellet production as soon as the fourth quarter of 2019. Steel product shipments in the first nine months of 2019 decreased by 1.1% compared to the same period last year, primarily due to the development of Flexible Modular Furnace steel production technology at Ural Steel."
Iron ore products
- In 9M 2019, iron ore production amounted to 30.1 mn tonnes (+0.2% y-o-y ). In Q3 2019, production volumes increased by 3.4% q-o-q . The growth was driven by the completion of maintenance works on water-slurry circuit systems at MGOK in Q2 2019 and an increase in productivity due to the processing of higher quality ore
- In 9M 2019, pellet production increased by 2.2% y-o-y and amounted to 21.2 mn tonnes as a result of the completion of major maintenance works at Pellet Plant #2 at LGOK and the reconstruction of Pellet Plant #3 at MGOK (1st stage), and a change in the pellet product mix. However, in Q3 2019, pellet production decreased by 1.0% q-o-q primarily due to the major maintenance works at Pellet Plant #1 at MGOK
- In 9M 2019, the Company produced 5.9 mn tonnes of HBI/DRI, which represents 1.3% growth y-o-y. This is mainly explained by the increase in production volumes at the more productive HBI-3 Plant, which underwent major maintenance works in Q3 2018. However, in Q3 2019, production volumes decreased by 8.5% q-o-q due to scheduled major maintenance works at HBI-1 and HBI-2 Plants.
- In 9M 2019, the total volume of iron ore product shipments to third parties increased by 1.5% y-o-y and amounted to 19.3 mn tonnes. In Q3 2019, shipment volumes grew by 11.2% q-o-q mainly due to the increase in supplies of pellets and iron ore concentrate to Asia (China, Japan)
- HVA iron ore products (pellets and HBI/DRI) prevail in the total volume of iron ore product shipments and amounted to 73% in 9M 2019 and 71% in Q3 2019
- The share of iron ore product shipments to the domestic market amounted to 52% in 9M 2019 (compared to 66% in 9M 2018) and 46% in Q3 2019
- The Company increased the volume of export supplies during the reporting period by 44.6% y-o-y mainly due to the increase in supplies to Asia – its share comprised 20% in 9M 2019 compared to 3% in 9M 2018. In Q3 2019, export supplies increased by 26.4% q-o-q
Pig iron and steel products
- In 9M 2019, the output of hot metal decreased by 7.0% y-o-y and amounted to 2.1 mn tonnes due to major maintenance works at Blast Furnace #3 at Ural Steel. In Q3 2019, the Company increased hot metal production by 5.1% q-o-q due to the completion of major maintenance works at Blast Furnaces #3 and #4 in Q2 2019
- Crude steel production decreased by 2.7% y-o-y to 3.6 mn tonnes in 9M 2019 and by 3.9% q-o-q to 1.2 mn tonnes in Q3 2019. This growth was mainly a result of the development of FMF steel production technology and major maintenance works at CCM #1 and CCM #2 at Ural Steel in Q3 2019
- Pig iron shipments to third parties decreased from 1.6 mn tonnes in 9M 2018 to 1.4 mn tonnes in 9M 2019 mainly owing to the growth of internal consumption for steel production. Herewith, pig iron shipments in Q3 2019 comprised 0.5 mn tonnes with the 0.1 mn tonnes of growth q-o-q
- The share of HVA steel product shipments amounted to 43% in 9M 2019 (compared to 45% in 9M 2018). The share of shipments in Q3 2019 comprised 39%
- In 9M 2019, pig iron and steel product shipments to the Russian market increased by 6.6% and amounted to 31% (compared to 28% in 9M 2018). In Q3 2019, the share of shipments to the Russian market was 30%, while the increase in export supplies was 7.6% q-o-q mainly due to the increase in shipments to Asia (China, the Philippines, Japan)
Corporate Communications Director
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