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 the first half of 2021.
Management comments
Nazim Efendiev, CEO of Metalloinvest Management Company, commented:
“In the first half of 2021, the Company showed stable dynamics of production and sales indicators across the entire product line. products. We continue to actively develop production facilities and increase the share of high-quality products in our portfolio. In June, the overhaul of TsGBZh-1 was completed, the construction of a cyclical-flow technology at Lebedinsky GOK is nearing completion, and the construction of a concentrate re-enrichment building at Mikhailovsky GOK is in the active phase. A.V. Varichev ".
Iron ore products
Production
- Iron ore production in 1H 2021 grew by 1.2% y /y and amounted to 20.4 million tonnes. Compared to 2Q 2020, production increased by 2.7% to 10.2 million tonnes. Such dynamics is associated with the optimization of the time for repairs and maintenance of equipment and the improvement of the quality characteristics of ore
- The production of pellets remained at the level of the previous year and amounted to 14.2 million tonnes. Quarterly production also remained virtually unchanged and amounted to 7.1 million tonnes (-0.3% to 2Q 2020). In 1H 2021, LGOK completely switched to the production of fluxed pellets
- In 1H 2021, the Company produced 3.9 million tonnes of HBI /DRI, which is 5.4% less than in 1H 2020. overhaul of TsGBZh-1 at LGOK
Implementation
- In 1H 2021, the volume of supplies of iron ore products to external consumers amounted to 13.5 mln tonnes, unchanged to the same period last year
- The share of products with high added value (pellets and HBI /DRI) prevails in the total supply of iron ore products and amounts to 74%
- Share of sales iron ore products to the domestic market in 1H 2021 grew slightly and amounted to 49% of the total volume
- Due to the recovery in demand in the traditional nearby sales markets, in 1H 2021, the volume of exports to China decreased. Supplies to other regions were growing, Europe retained the largest share in the volume of export supplies, accounting for 74% of the total export volume
Metallurgical products
Production
- In 1H 2021, Metalloinvest produced 1.2 million tonnes of pig iron, which is 7.9% lower yoy, the decrease is due to changes in the composition of furnaces in operation and overhaul of DP-1 in February 2021. At the same time, production in 2Q 2021 increased by 5.2% and amounted to 0.6 million tonnes compared to 2Q 2020. The increase in production volume in relation to 2Q 2020 is due to the commissioning DP-2 after technical re-equipment
- The volume of steel production in 1H 2021 decreased YoY and amounted to 2.5 million tons (-2.3%). The decrease is due to a change in the calendar working hours and a change in the assortment
Sales
- Sales of cast iron to external consumers increased by 1.8% /y to 0.7 million tons. At the same time, in the second quarter, sales to external consumers increased by 19.4% compared to 2Q 2020 and amounted to 0.5 million tonnes
- The share of sales of HVA steel products in 1H 2021 increased to 40% (35% in 1H 2020)
