Metalloinvest (the "Company"), 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 nine months of 2020.
Management comments
Nazim Efendiev, CEO of Metalloinvest Management Company, commented:
“From January to September 2020, the Company increased its production of iron ore - the base product for further redistribution, by 1% over the same period last year. Qualitative changes have taken place in the structure of pellet production - Mikhailovsky GOK named after A.V. Varicheva increased production of commercial pellets with an iron content of over 65%, increasing the share of fluxed pellets in the total volume from 35% to 46%. innovative technology FMF ".
Iron ore products
Production
- For 9M 2020 volume iron ore production amounted to 30.4 million tons, which is 1.0% more than last year. This result is due to the increased productivity due to the processing of higher quality ore and a decrease in ore consumption for concentrate. In 3Q 2020, iron ore production slightly decreased by 2.2% YoY to 10.2 million tonnes. The decrease in volumes is due to equipment repairs
- Due to the reconstruction of OM-3 at MGOK, which took place in 3Q 2020, pellet production in 9M 2020 decreased by 2.2% YoY to 20.8 million tons. In 3Q 2020, pellet production decreased by 7.6% YoY.
- In 9M 2020, the Company produced 5.8 million tonnes of HBI /DRI, which is 2.4% less than in 9M 2019. with overhaul of TsGBZh-1,3 and modernization of UM # 1 in 3Q 2020
Implementation
- Following the results of 9M 2020 volume sales of iron ore products to external consumers grew by 7.8% YoY to 20.8 million tonnes. The main growth driver was an increase in the supply of pellets to Europe and Asia
- The share of products with high added value (pellets and HBI /DRI) continues to prevail in the total volume of supplies of the Company's iron ore products - 72.1% in 9M 2020
- The share of supplies of iron ore products to the domestic market slightly decreased to 47.8%, against 51.9% in 9M 2019
- The volume of exports in 9M 2020 increased by 17.5% yoy /yr due to increased shipments to Europe and Asia. The volume of supplies to China increased 2.5 times
Metallurgical products
Production
- Pig iron production in 9M 2020 decreased by 13.0% and amounted to 1.8 million tonnes due to a decrease in BF-3 productivity at Ural Steel caused by repair work
- Based on 9M 2020 results, volumes Steel production increased by 3.1% YoY to 3.7 Mt, mainly due to the reconstruction of electric furnaces using FMF technology at Ural Steel in 2019, as well as an increase in productivity amid a change in the product mix at OEMK. At the same time, production at Ural Steel increased by 9.1% YoY
Sales
- Amid a decline in production pig iron supplies, as well as due to an increase in domestic consumption due to an increase in steel production, supplies of pig iron to external consumers in 9M 2020 decreased to 0.9 million tons compared to 1.4 million tons in 9M 2019
- Share of supplies HVA steel products in 9M 2020 amounted to 35.3%
- In 9M 2020, supplies of metallurgical products to the Russian market increased by 1.2% YoY and amounted to 32.2% of the total volume
