Metalloinvest, a leading manufacturer and supplier of iron ore products and hot briquetted iron (HBI) in the global market, one of the regional producers of high-quality steel, announces operating results for 1H2020.
Management comments
Nazim Efendiev, CEO of Metalloinvest Management Company, commented:
“In the first half of 2020, the Company for all key products - iron ore concentrate, pellets, HBI and steel - demonstrated a steady increase in production and sales figures compared to the same period last year. Implementation of a strategy to increase the share of high-quality products in our product line will further enhance the stability of the Company's sales in the face of volatility in commodity markets and the global economy as a whole. ”
Iron ore products
Production
- Iron ore production in 1H 2020 increased by 2.6% YoY to 20.2 Mt, mainly due to an increase in productivity as a result of processing of high quality ore, a decrease in ore consumption for concentrate. In 2Q 2020, iron ore production decreased by 1.7% YoY to 9.9 million tonnes. This dynamics is largely due to the scheduled maintenance of the central heating plant-1.3 in 2Q 2020
- Pellet output in 1H 2020 increased by 0.6% YoY to 14.2 mln tonnes, which is mainly due to an increase in productivity as a result of changes in the structure of the pellet product line. In 2Q 2020, the production of pellets decreased by 2.0% YoY. The key factor is the scheduled overhaul of OM-2 in 2Q 2020 at MGOK
- In 1H 2020, the Company produced 4.1 million tonnes of HBI /DRI, which is 1.6% higher than in 1H 2019. mainly increase in productivity
Sales
- In 1H 2020, sales of iron ore products to external consumers increased by 8.4% YoY g and amounted to 13.5 million tons. The main driver of growth was an increase in the supply of pellets to China
- The share of products with high added value (pellets and HBI /DRI) continues to prevail in the total supply of the Company's iron ore products - 74% in 1H 2020 and 1H 2019
- The share of supplies of iron ore products to the domestic market decreased to 47% in 1H 2020 compared to 55% in 1H 2019, due to an increase in export supplies
- The volume of export supplies in 1H 2020 increased by 28.3% YoY due to an increase in shipments to Asia (2 times)
Metallurgical products
Production
- In 1H 2020, Metalloinvest produced 1.3 million tonnes of pig iron, which is 7.2% less than in 1H 2019. Such dynamics is mainly associated with a decrease in the productivity of BF-3 at Uralskaya Steel
- In 1H 2020, steel production increased by 4.6% YoY to 2.5 mln tonnes mainly due to the reconstruction of GMP-2 at Ural Steel in 1H 2019, as well as an increase in manufacturer against the background of changes in the product mix at OEMK
Implementation
- Against the background of a decrease in pig iron production, as well as in connection with an increase in domestic consumption due to an increase in steel output, pig iron supplies to external consumers in 1H 2020 decreased to 0.7 million tonnes compared to 0.9 million tonnes in 1H 2019
- The share of HVA steel product supplies in 1H 2020 amounted to 35% (46% in 1H 2019)
- In 1H 2020, supplies of metallurgical products to the Russian market decreased by 3.4% YoY and amounted to 31% of total shipments (31% in 1H 2019)
