Press Room

Metalloinvest announces operational results for H1 2020

31 July 2020

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 half of 2020.

Management comments

Nazim Efendiev, CEO of Management Company Metalloinvest, commented:

In the first half of 2020, the Company demonstrated strong year-on-year growth in the production and shipments of all key products, namely iron ore concentrate, pellets, HBI and steel. The implementation of our strategy to increase the share of high quality products in our product mix will further improve the sustainability of our sales in the face of volatility in commodity markets and the global economy as a whole.

Iron ore products

Production

  • In H1 2020, iron ore production increased by 2.6% y-o-y and amounted to 20.2 mn tonnes. Growth was driven by an increase in productivity due to the processing of higher quality ore and the reduction of iron ore consumption for concentrate. In Q2 2020, production volumes decreased by 1.7% y-o-y and amounted to 9.9 mn tonnes. This is mainly explained by scheduled maintenance works at beneficiation workshops #1 and #3 in Q2 2020
  • In H1 2020, pellet production increased by 0.6% y-o-y and amounted to 14.2 mn tonnes mainly as a result of an increase in productivity due to a change in the pellet product mix. In Q2 2020, pellet production decreased by 2.0% y-o-y primarily due to the scheduled major maintenance works at Pellet Plant #2 at MGOK in Q2 2020
  • In H1 2020, the Company produced 4.1 mn tonnes of HBI/DRI, which represents 1.6% growth y-o-y. This is mainly explained by an increase in productivity

Shipments

  • In H1 2020, the total volume of iron ore product shipments to third parties increased by 8.4% y-o-y and amounted to 13.5 mn tonnes. This is mainly due to an increase in shipments of pellets to China
  • HVA iron ore products (pellets and HBI/DRI) continue to prevail in the total volume of iron ore product shipments and amounted to 74% in H1 2020 and in H1 2019
  • The share of iron ore product shipments to the domestic market decreased to 47% in H1 2020 compared to 55% in H1 2019 due to an increase in export shipments

Pig iron and steel products

Production

  • In H1 2020, Metalloinvest produced 1.3 mn tonnes of hot metal, which represents 7.2% decrease y-o-y. This is mainly due to a decrease in productivity of Blast Furnace #3 at Ural Steel
  • Crude steel production increased by 4.6% y-o-y to 2.5 mn tonnes. This growth was mainly a result of the reconstruction of FMF #2 at Ural Steel in H1 2019 and the increase in productivity following a change in the product mix at OEMK

Shipments

  • As a result of a decrease in hot metal production, as well as an increase of internal pig iron consumption to secure steel production growth, pig iron supplies to third parties decreased from 0.9 mn tonnes in H1 2019 to 0.7 mn tonnes in H1 2020
  • The share of HVA steel product shipments amounted to 35% in H1 2020 (compared to 46% in H1 2019)
  • In H1 2020, pig iron and steel product shipments to the Russian market decreased by 3.4% y-o-y and amounted to 31% (31% in H1 2019)

Documents
Download PDF (540.17 Kb) Press release
Download XLSX (51.49 Kb) Operational Results Q2 2020
Artem Lavrischev

Artem Lavrischev

Director of Finance and Economics Development Department
E-mail: ir@metalloinvest.com
Tel.: +7 (495) 981-55-55

For more information, please contact the Finance and Economics Development Department

 
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