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Metalloinvest (the “Company”), 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 first nine months of 2020.
Management comments
Nazim Efendiev, CEO of
Management Company Metalloinvest, commented:
“For the period from January to
September 2020, the Company increased its production of iron ore, a base
product for further processing, 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. Varichev increased the 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%.
Steel production increased by 3%
mainly due to an increase in volumes at Ural Steel after completion of
the reconstruction of electric arc furnaces using the innovative FMF
technology, that took place in 2019”.
Iron ore Production
• In 9M 2020, iron ore
production amounted to 30.4 mn tonnes, a 1.0% y-o-y3 increase. This is
mainly attributed to the increase in productivity due to the processing
of higher quality ore and the reduction of iron ore consumption for
concentrate. In Q3 2020, production volumes decreased by 2.2% y-o-y and
amounted to 10.2 mn tonnes. The decrease in volumes is associated with
equipment repairs.
• Due to the reconstruction
of Pellet Plant #3 at MGOK which took place in Q3 2020, pellet
production in 9M 2020 decreased by 2.2% y-o-y and amounted to 20.8 mn
tonnes. In Q3 2020, pellet production decreased by 7.6% y-o-y.
• In 9M 2020, the Company
produced 5.8 mn tonnes of HBI/DRI, which is 2.4% less than in 9M 2019.
The decrease is due to the overhaul of HBI Plants #1 and #3 and the
modernisation of DRI Plant #1 in Q3 2020.
Iron Ore Shipments
• In 9M 2020, the total
volume of iron ore product shipments to third parties increased by 7.8%
y-o-y and amounted to 20.8 mn tonnes. The main growth driver was an
increase in pellets shipment to Europe and Asia.
• The HVA4 iron ore
products (pellets and HBI/DRI) continue to prevail in the total volume
of iron ore product shipments and amounted to 72.1% in 9M 2020.
• The share of iron ore
product shipments to the domestic market decreased slightly to 47.8%,
compared to 51.9% in 9M 2019.
• In 9M 2020, the Company
increased the volume of export shipments to Europe and Asia by 17.5%
y-o-y. The volume of shipments to China increased by 2.5 times.
T1：Production
|
tonnes
’000 |
3Q2019 |
2Q2020 |
3Q2020 |
2Q2020 VS 3Q2020 |
3Q2019 VS 3Q2020 |
|
Iron
Ore |
10,404 |
9,891 |
10,180 |
2.9% |
-2.2% |
|
Pellet |
7,157 |
7,086 |
6,611 |
-6.7% |
-7.6% |
|
HBI/DRI |
1,857 |
2,027 |
1,648 |
-18.7% |
-11.2% |
T2：Shipments
by Product
|
tonnes
’000 |
3Q2019 |
2Q2020 |
3Q2020 |
2Q2020 VS 3Q2020 |
3Q2019 VS 3Q2020 |
|
Iron
Ore |
1,996 |
1,573 |
2,331 |
48.2% |
16.8% |
|
Pellet |
3,894 |
3,870 |
4,097 |
5.9% |
5.2% |
|
HBI/DRI |
1,006 |
1,262 |
895 |
-29.1% |
-11.0% |
|
Other |
16 |
83 |
65 |
-21.7% |
315.2% |
|
Total |
6,911 |
6,788 |
7,389 |
8.9% |
6.9% |
T3：Shipments
by Region
|
tonnes
’000 |
3Q2019 |
2Q2020 |
3Q2020 |
2Q2020 VS 3Q2020 |
3Q2019 VS 3Q2020 |
|
Russia |
3,211 |
2,856 |
3,709 |
29.9% |
15.5% |
|
Europe |
1,203 |
1,397 |
1,957 |
40.1% |
62.7% |
|
Asia |
2,203 |
2,210 |
1,348 |
-39.0% |
-38.8% |
|
MENA |
139 |
225 |
232 |
3.1% |
66.4% |
|
Other |
155 |
100 |
143 |
43.0% |
-7.9% |
|
Total |
6,911 |
6,788 |
7,389 |
8.9% |
6.9% |
More Info:
Metalloinvest’s 3Q2020 Iron Ore Report |
