Operating results for the 12 months and 4th quarter of 2019

metalloinvest ("the Company") is a leading manufacturer and supplier of iron ore and hot briquetted iron (HBI) on the world market, one of the regional producers of high quality steel, announces its operational results for the 12 months and 4th quarter of 2019.

Comments management

Andrey Varichev, CEO of Management company metalloinvest, commented:

"In 2019, the Company successfully completed one of the stages of the strategic integrated development programme aimed at improving product quality. Launched the technology of fine screening at the Mikhailovsky GOK. Output at full capacity four sections of a thin grating in the fourth quarter of 2019 made it possible to produce a concentrate with higher iron content. Also was reconstructed kiln at MMPP, which gave the Company the ability to increase production of pellets of premium quality.

Thus, for the year 2019 the Company has demonstrated the growth of production and shipment of products with high added value (pellets and HBI/DRI). Their share in total shipments of iron ore products amounted to 72%.

the Volume of steel production in 2019 decreased by 3.7%, mainly due to the reconstruction of flexible modular furnaces at Ural Steel and working off of new technologies in steel production".

Iron products

• the Volume of production of iron ore in 12M 2019 amounted to 40.2 million tonnes (-0,3% yoy). 4K 2019 iron ore production decreased by 2.2% from the previous quarter. This growth is due to a change in the structure of sales of products, changes in quality characteristics of mined ore and production of concentrate with a higher Fe content of the result output at full capacity four sections of a thin grating on the MMPP, which in turn led to lower volumes of production.


• Release pellets 12M 2019 rose 1.5% yoy and amounted to 28.1 million tons. The growth associated with the completion of the overhaul of the OM-2 at LGOK and reconstruction of Ω-3 at MMPP, optimization of the duration of the repairs of equipment, as well as changes in the structure of production of pellets. At the same time, in Q4 2019 the volume of production decreased by 4.3% QoQ mainly in connection with a scheduled major overhaul of its roasting machine at the OEMK.


• For 12M 2019, the Company produced 7.9 million tons of HBI/DRI, which is 0.5% higher than in 12M 2018. At the same time, in Q4 2019 the volume of production grew by 5.6% QoQ, following the completion Q3 2019 planned capital repairs of the MIND -1,2 OEMK and complexes cgbg -1,2 for the GOK, as well as increased production on more productive complex ZHBI-3.


• At the end of the 12TH 2019 the volume of shipments of iron ore products to external customers increased by 3.3% yoy and amounted to 26.7 million tons. 4K 2019 deliveries increased by 7.2% QoQ mainly due to the increase in shipments of pellets and concentrate on the domestic market.


• the Share of products with high added value (pellets and HBI/DRI) prevails in the total volume of shipments of iron ore products of the Company and is 72% for 12M 2019 and 69% for 4K 2019.


• Share of shipments of iron ore products to the domestic market amounted to 53% for 12M 2019 (compared to 65% for 12M 2018) and 54% in Q4 2019.


• export Volume for 12M 2019 rose by 39.7% yoy mainly due to the increase in shipments to Asia – they accounted for 22% of total shipments for 12M 2019, up from 4% in 12M 2018. Export volume in Q4 2019 decreased by 8.1% due to the redistribution of supply to the domestic market.










steel products










• Production of cast iron for 12M 2019 decreased by 9.1% yoy and amounted to 2.7 mln t in connection with the implementation of repairs of the blast furnaces. 4K 2019 the volume of production declined by 7.2 percent from the previous quarter.


• steel output declined 3.7% yoy to 4.9 million tonnes for 12M 2019 mainly due to the reconstruction of GMF -1,2 at Ural Steel. At the same time, in Q4 2019 the volume of production increased by 3.6% QoQ and amounted to 1.2 million t. the Increase is due to the completion of capital repair of the continuous casting machine 1 and the reconstruction of the GPC-1 in Q3 2019 at Ural Steel.


• Shipment of cast iron external customers decreased from 2.2 million tonnes for 12M 2018 to 1.7 million tonnes for 12M 2019 mainly due to increasing domestic consumption. Shipment of cast iron in 4K 2019 amounted to 0.3 million tonnes, 0.1 million tonnes higher than in Q3 2019.


• Share of shipments of steel products HVA according to the results of 12M 2019 was 41%.


• 12M For 2019 deliveries of steel products to the Russian market grew by 0.6% and amounted to 31% of total shipments (compared to 28% for 12M 2018). 4K 2019 deliveries to the Russian market amounted to 29%.