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Metalloinvest,
a leading global iron ore and merchant HBI producer and supplier, and one
of the regional producers of high-quality steel, today announces its
operational results for the second quarter of 2019.
Management comments
Andrey
Varichev, CEO of Management Company Metalloinvest, commented:
“In
line with our strategy to increase the share of high value-added products
in the output, in Q2 2019 the Company increased pellet production and
shipments by 6% and 7%, respectively, compared to the previous quarter. As
a result, the share of HVA iron ore products, comprising pellets and HBI/DRI,
increased to 75% of our total iron ore product shipments. At the same
time, sales of iron ore products to Asia significantly increased in Q2
2019 and reached 16% of total iron ore product shipments, rising from 11%
in Q1 2019. The share of HVA products in steel shipments continues to
gradually increase and was recorded at 46%, with the main market being
domestic customers.”
Iron ore products
In
Q2 2019, iron ore production remained almost flat as compared to Q2 2018
(-0.6% y-o-y2) and amounted to 10.1 mn tonnes. At the same time, the
growth in production volumes by 4.8% q-o-q3 was driven by an increase in
productivity due to the processing of higher quality ore and the
completion of scheduled maintenance works.
In
Q2 2019, pellet production increased by 3.9% y-o-y and 5.7% q-o-q and
amounted to 7.2 mn tonnes. The growth in pellet production was due the
completion of scheduled maintenance works, as well as an increase in
productivity due to a change in the pellet product mix.
HBI/DRI
production remained flat q-o-q (2.0 mn tonnes) and was 1.6% higher y-o-y
mainly due an increase in productivity of the Company’s HBI plants.
Iron ore product shipments
In
Q2 2019, the total volume of iron ore product shipments to third parties
remained flat q-o-q and amounted to 6.2 mn tonnes.
HVA
iron ore product (pellets and HBI/DRI) shipments increased to 75% of the
total amount of iron ore product shipments in Q2 2019, compared with 74%
in Q1 2019 and 72% in Q2 2018.
In
Q2 2019, the share of iron ore product shipments to the domestic market
amounted to 53%, compared with 57% in Q1 2019 and 67% in Q2 2018.
The
Company increased the volume of export supplies during the reporting
period by 9.7% q-o-q and 35.8% y-o-y mainly due to the increase in
supplies to Asia (the share of shipments to Asia comprised 16% in Q2 2019,
compared with 11% in Q1 2019 and 1% in Q2 2018).
Pig iron and steel
products
In
Q2 2019, the output of hot metal remained almost flat q-o-q (+0.9%) and
amounted to 0.7 mn tonnes. The Company decreased hot metal production by
7.2% y-o-y as a result of maintenance and repair works at Ural Steel in Q2
2019.
Crude
steel production increased in Q2 2019 by 5.1% q-o-q to 1.2 mn tonnes. This
growth was largely a result of plant reconstruction and hot tests of FMF4
at Ural Steel in Q1 2019. Crude steel output was decreased by 1.1% y-o-y
due to the development of FMF steel production technology.
In
Q2 2019, pig iron shipments to third parties decreased to 0.4 mn tonnes
compared with 0.5 mn tonnes in Q1 2019, partly owing to the growth of
internal consumption for steel production.
The
share of HVA5 steel product shipments amounted to 46.0% in Q2 2019,
compared with 45.5% in Q1 2019 and 44.6% in Q2 2018.
In
Q2 2019, pig iron and steel product shipments was partially reoriented to
the Russian market (its share increased to 34%, compared with 29% in Q1
2019 and 28% in Q2 2018), mainly due to an increase in shipments to
ChelPipe. Thus, export shipments of pig iron and steel product in Q2 2019
decreased by 12.6% q-o-q and 16.7% y-o-y.
Production by product
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Change
|
|
Iron ore*
|
10,074
|
10,108
|
10,014
|
10,100
|
9,893
|
10,124
|
9,995
|
10,347
|
9,602
|
10,063
|
4.8%
|
|
Pellets
|
5,982
|
6,268
|
6,323
|
6,514
|
6,691
|
6,956
|
7,126
|
6,885
|
6,840
|
7,230
|
5.7%
|
|
HBI/DRI
|
1,469
|
1,830
|
1,742
|
1,943
|
2,021
|
1,997
|
1,810
|
1,997
|
2,020
|
2,029
|
0.4%
|
Shipments by product
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Change
|
|
Iron ore*
|
2,793
|
2,614
|
2,548
|
2,435
|
1,880
|
1,807
|
1,581
|
2,305
|
1,624
|
1,547
|
-4.7%
|
|
Pellets
|
3,243
|
3,028
|
3,041
|
3,509
|
3,085
|
3,560
|
3,889
|
3,480
|
3,336
|
3,554
|
6.5%
|
|
HBI/DRI
|
595
|
971
|
994
|
1,012
|
1,111
|
1,159
|
943
|
1,035
|
1,224
|
1,098
|
-10.3%
|
|
Other***
|
6
|
11
|
9
|
3
|
11
|
9
|
9
|
5
|
12
|
16
|
33.3%
|
|
Total
shipments
|
6,637
|
6,624
|
6,592
|
6,959
|
6,087
|
6,536
|
6,422
|
6,825
|
6,197
|
6,214
|
0.3%
|
Shipments by region
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Change
|
|
Russia
|
3488
|
3606
|
4157
|
4964
|
4290
|
4380
|
3948
|
4160.59896
|
3528.11326
|
3286.50579
|
-0.0683107
|
|
Europe
|
2227
|
2044
|
1265
|
1205
|
1093
|
1338
|
1591
|
1450.8674
|
1603.84314
|
1455.14931
|
-0.0928928
|
|
Asia
|
298
|
285
|
645
|
219
|
254
|
61
|
251
|
493.2206
|
702.306531
|
969.31465
|
0.3803419
|
|
MENA
|
344
|
336
|
359
|
313
|
281
|
413
|
357
|
415.68267
|
199.4464
|
354.786512
|
0.7839196
|
|
Others
|
280
|
352
|
165
|
257
|
169
|
345
|
274
|
304.219382
|
162.8003
|
148.138788
|
-0.0920245
|
|
Total
shipments
|
6637
|
6624
|
6592
|
6959
|
6087
|
6535.63748
|
6422
|
6824.58901
|
6196.50963
|
6213.89505
|
0.0027433
|
OEMK
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Production by
product
|
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
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Q2 2019
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Change
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|
Pellets
|
1,015
|
1,030
|
1,025
|
899
|
993
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1,035
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1,054
|
896
|
1,033
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1,030
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-0.3%
|
|
DRI
|
754
|
703
|
665
|
846
|
825
|
786
|
788
|
823
|
829
|
789
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-4.8%
|
|
Crude steel
|
887
|
830
|
883
|
881
|
860
|
856
|
846
|
874
|
851
|
854
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0.4%
|
|
Shipments by
product
|
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
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Q2 2019
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Change
|
|
DRI
|
20
|
25
|
20
|
34
|
34
|
37
|
43
|
32
|
47
|
44
|
-6.4%
|
|
Steel
products
|
852
|
776
|
849
|
828
|
811
|
817
|
815
|
824
|
805
|
815
|
1.2%
|
|
Total
shipments
|
872
|
801
|
870
|
863
|
845
|
854
|
858
|
857
|
852
|
859
|
0.8%
|
Ural Steel
|
Production by
product
|
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
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Q2 2019
|
Change
|
|
Hot metal
|
642
|
696
|
672
|
676
|
716
|
737
|
785
|
787
|
678
|
684
|
0.9%
|
|
Crude steel
|
346
|
311
|
335
|
286
|
378
|
404
|
386
|
450
|
334
|
391
|
17.1%
|
|
Shipments by
product
|
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Change
|
|
Pig iron
|
474
|
553
|
518
|
531
|
531
|
542
|
543
|
559
|
532
|
394
|
-25.9%
|
|
Steel
products
|
293
|
254
|
297
|
264
|
323
|
357
|
320
|
374
|
321
|
353
|
10.0%
|
|
Total
shipments
|
767
|
807
|
816
|
795
|
854
|
899
|
863
|
933
|
853
|
748
|
-12.3%
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Related Link:
Official Document
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