Metinvest increased steel production – up to 3.9 million tons

Metinvest, the largest Ukrainian mining and metallurgical holding, in January-June this year increased steel production by 1% compared to the same period last year – up to 3.963 million tons, pig iron – also by 1%, up to 4.066 mln tons, but reduced the total coke production – by 4%, to 2.373 mln tons.

According to the press release of the parent company Metinvest B.V. on the results of operating activities for the first half of 2020 on Tuesday, the group in the second quarter of 2020 reduced the production of pig iron by 5% compared to the previous quarter – to 1,976 million tons.

Thus, production at Azovstal “decreased by 167 thousand tons due to the presence of DP-4 in the reserve after the end of the overhaul, for which it was stopped in March 2020. At the end of May 2020, DP-4 was launched due to the recovery in market demand. At the same time, the production of pig iron at MMK im. Ilyich increased by 53 thousand tons as a result of the launch of the DP-3 at the end of the first quarter of 2020.

Steel production in the second quarter decreased by 17% compared to the previous quarter, to 1.792 million tons due to a decrease in pig iron production and overhaul of converter # 2 at MMK, followed by being held in reserve due to weak market demand for steel products.

In the second quarter, the production of semi-finished products increased by 38% compared to the previous quarter, to 880 thousand . tonnes due to an increase in commercial pig iron production by 289 thousand tonnes due to an increase in market demand. At the same time, the production of commercial slabs decreased by 46 thousand tons due to a decrease in production at both Mariupol plants.

In the first half of 2020, the production of commercial semi-finished products increased by 5% compared to the same period in 2019 – to 1.517 million tons. Thus, the production of commercial slabs increased by 131 thousand tons due to demand. At the same time, the production of commercial pig iron decreased by 53 thousand tons – mainly due to the redirection of pig iron for steel production at MMK and subsequent processing.

In the second quarter of 2020, production of finished products decreased by 17% in relation to to the previous quarter, up to 1.294 million tons. At the same time: the production of flat products decreased by 181 thousand tons to 1.105 million tons, mainly due to the COVID-19 pandemic, which led to a decrease in demand for hot-rolled sheets and the shutdown of Italian rolling mills in March-April 2020. At the same time, thanks to the launch of mill 1700 at MMK after the completion of the reconstruction in November 2019, the production of coils at the mill increased by 65 thousand tons.

At the same time, the production of long-rolled products decreased by 74 thousand tons – to 155 thousand tonnes – mainly due to a decrease in production at Promet Steel as a result of lower demand. The production of rail products decreased by 4 thousand tons – to 6 thousand tons. The production of tubular products decreased by 14 thousand tons – to 28 thousand tons.

In the first half of 2020, finished product production decreased by 7% compared to the same period in 2019 – to 2.824 million tons. At the same time, the production of flat products decreased by 201 thousand tons, to 2.353 million tons – mainly due to a decrease in production of hot-rolled sheets by 391 thousand tons. tons. This was partially offset by a 299 kt increase in hot-rolled coil production due to the launch of the 1700 mill at MMK after reconstruction and market demand for this product. Also, the production of long products decreased by 6 thousand. tons – up to 385 thousand tons. The production of rail products increased by 2 thousand tons, to 16 thousand tons, the output of pipe products decreased by 9 thousand tons, to 70 thousand tons.

In the second quarter of 2020, the volume of coke production amounted to 1.250 million tons, which is 11% higher than in the previous quarter due to the consolidation of production volumes of the Dnieper Coke Plant (DKHZ) from April 2020 in the amount of 128 thousand tons. In the first half of 2020, coke production decreased by 4% compared to the same period in 2019 – to 2.373 million tonnes – as a result of a decrease in the average number of used coke ovens at Avdiivka Coke Plant compared to the first half of last year, which was partially offset by the consolidation of production volumes of DKHZ from the 2nd quarter of 2020.

As reported, Metinvest in 2019 increased steel production by 3% compared to 2018 – to 7.578 million tons, while reducing the production of pig iron also by 3% – to 7.928 million tons, and total coke production – by 11%, to 4.667 million tons.

Metinvest is a vertically integrated mining group of companies that manages assets at every link of the production chain from iron ore and coal mining and production coke to the production of semi-finished products and finished products from steel, pipe rolling and coils, as well as the production of other products with high added value. The group consists of mining and metallurgical enterprises,

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