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Management comments
Andrey Varichev, CEO of Management Company Metalloinvest, commented: “We
are pleased to have recorded a significant increase in the production of
all major products during the first 9 months of the year. However, the
scheduled maintenance works on Metalloinvest’s key production equipment
in the third quarter have affected the Company's quarter-on-quarter
operating results.
Furthermore, we are delighted to note that, in line with our strategy of
increasing the share of high valueadded products, the shipment of
pellets and HBI in January-September amounted to 72% of the total sales
of iron ore products, compared to 60% for the same period last year. The
share of shipments of high valueadded steel products has consistently
been making up approximately half of our total steel product sales.”
Iron ore products
·
In Q3 2018, Metalloinvest produced 10.0 mn tonnes of iron ore1 , a
decrease of 1.3%2 q-o-q, mainly due to scheduled maintenance works at
LGOK and MGOK. In 9M 2018, the Company produced 30.0 mn tonnes of iron
ore (-0.6% y-o-y)
·
In Q3 2018, the Company increased pellet production by 2.4% q-o-q to 7.1
mn tonnes, mainly as a result of the partial change in the schedule of
maintenance works at LGOK. In 9M 2018, the Company produced 20.8 mn
tonnes of pellets (+11.8% y-o-y)
·
In Q3 2018, HBI/DRI output decreased by 9.4% to 1.8 mn tonnes largely
due to scheduled major maintenance works at two HBI plants. In 9M 2018,
the Company produced 5.8 mn tonnes of HBI/DRI (+15.6% y-o-y)
·
In Q3 2018, the share of high value-added (HVA) iron ore product
shipments (pellets, HBI/DRI) increased to 75%, compared with 72% in Q2
2018
Steel products
·
In Q3 2018, Metalloinvest increased hot metal output by 6.5% q-o-q to
0.8 mn tonnes, mainly due to completion of major maintenance works at
one of blast furnaces at Ural Steel in Q2 2018. In 9M 2018, the Company
produced 2.2 mn tonnes of hot metal (+11.3% y-o-y)
·
In Q3 2018, crude steel production decreased by 2.2% q-o-q to 1.2 mn
tonnes. This was largely a result of a change in the product mix at OEMK
and scheduled major maintenance works at Rolling Mill 2800 at Ural
Steel. In 9M 2018, the Company produced 3.7 mn tonnes of crude steel
(+3.8% y-o-y)
·
In Q3 2018, HVA3 steel product shipments as a proportion of the
Company’s overall steel product shipments stood almost flat q-o-q at 44%
Metalloinvest consolidated operational results
Iron ore products
Production by product
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Iron ore |
10,074 |
10,108 |
10,014 |
10,100 |
9,893 |
10,124 |
9,995 |
-1.3% |
|
Pellets |
5,982 |
6,268 |
6,323 |
6,514 |
6,691 |
6,956 |
7,126 |
2.4% |
|
HBI/DRI |
1,469 |
1,830 |
1,742 |
1,943 |
2,021 |
1,997 |
1,810 |
-9.4% |
Shipments by product
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Iron ore |
2,793 |
2,614 |
2,548 |
2,435 |
1,880 |
1,807 |
1,581 |
-12.5% |
|
Pellets |
3,243 |
3,028 |
3,041 |
3,509 |
3,085 |
3,560 |
3,889 |
9.2% |
|
HBI/DRI |
595 |
971 |
994 |
1,012 |
1,111 |
1,159 |
943 |
-18.6% |
|
Other |
6 |
11 |
9 |
3 |
11 |
9 |
9 |
0.0% |
|
Total shipments |
6,637 |
6,624 |
6,592 |
6,959 |
6,087 |
6,536 |
6,422 |
-1.7% |
Shipments by region
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Russia |
3,488 |
3,606 |
4,157 |
4,964 |
4,290 |
4,380 |
3,948 |
-9.9% |
|
Europe |
2,227 |
2,044 |
1,265 |
1,205 |
1,093 |
1,338 |
1,591 |
18.9% |
|
Asia |
298 |
285 |
645 |
219 |
254 |
61 |
251 |
- |
|
MENA |
344 |
336 |
359 |
313 |
281 |
413 |
357 |
-13.6% |
|
Others |
280 |
352 |
165 |
257 |
169 |
345 |
274 |
-20.6% |
|
Total shipments |
6,637 |
6,624 |
6,592 |
6,959 |
6,087 |
6,536 |
6,422 |
-1.7% |
Pig iron and steel products
Production by product
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Hot metal |
642 |
696 |
672 |
676 |
716 |
737 |
785 |
6.5% |
|
Crude steel |
1,232 |
1,141 |
1,218 |
1,167 |
1,237 |
1,260 |
1,232 |
-2.2% |
Shipments by product
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Pig iron |
474 |
553 |
518 |
531 |
531 |
542 |
543 |
0.2% |
|
Steel products, incl. |
1,145 |
1,030 |
1,147 |
1,092 |
1,134 |
1,174 |
1,136 |
-3.2% |
|
SEMIS |
599 |
443 |
573 |
585 |
555 |
581 |
584 |
0.5% |
|
SEMIS HVA |
85 |
100 |
86 |
42 |
75 |
81 |
75 |
-7.4% |
|
SBQ HVA |
238 |
263 |
270 |
249 |
274 |
279 |
269 |
-3.6% |
|
Plate |
94 |
75 |
82 |
52 |
59 |
70 |
48 |
-31.4% |
|
Plate HVA |
130 |
149 |
136 |
164 |
171 |
164 |
160 |
-2.4% |
|
Total shipments, incl.: |
1,619 |
1,583 |
1,665 |
1,623 |
1,665 |
1,716 |
1,679 |
-2.2% |
|
Steel products HVA |
453 |
512 |
492 |
455 |
520 |
524 |
504 |
-3.8% |
Shipments by region
|
tonnes '000 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Change |
|
Russia |
510 |
419 |
453 |
390 |
421 |
482 |
490 |
1.7% |
|
Europe |
154 |
213 |
298 |
267 |
331 |
299 |
221 |
-26.1% |
|
Asia |
83 |
38 |
38 |
111 |
106 |
17 |
88 |
- |
|
MENA |
297 |
292 |
483 |
394 |
306 |
280 |
293 |
4.6% |
|
Others |
575 |
621 |
393 |
461 |
501 |
639 |
586 |
-8.3% |
|
Total shipments |
1,619 |
1,583 |
1,665 |
1,623 |
1,665 |
1,716 |
1,679 |
-2.2% |
To read full article at Metalloinvest |
