Metinvest increased steel production by 12%, pig iron – by 7%, but reduced total coke production – by 12%

Metinvest, the largest Ukrainian mining and metallurgical holding, in January-March this year increased steel production by 12% compared to the same period last year – up to 2.170 million tons, pig iron – by 7%, to 2.090 million tons, but reduced the total coke production – by 12%, to 1.122 million tons.

According to the press release of the parent company Metinvest B.V. On the operating results for the first quarter of 2020, the group increased steel production by 30% compared to the fourth quarter of 2019, pig iron – by 11% and total coke output by 7%.

It is explained that in the first quarter of 2020, pig iron production increased by 11% compared to the previous quarter: for example, production at Azovstal increased by 146 thousand tons due to the launch of blast furnace No. 2 after overhaul in the previous quarter. This offset the effect of the shutdown of blast furnace No. 4 in March 2020 for overhaul and subsequent withdrawal to the reserve due to lower market demand.

At MMK im. Ilyich, the increase in production amounted to 57 thousand tons as a result of the launch of the DP-3 after the overhaul, which was postponed to the first quarter of 2020 due to weak demand on the metal products market in the previous quarter.

Steel production in January-March 2020 increased by 30% qoq due to an increase in pig iron production and redirection of pig iron for steel production at MMK and subsequent processing. In the first quarter of 2020, compared to the same period in 2019, pig iron production at the Mariupol mills increased by 7%, mainly due to an increase in production at Azovstal by 168 thousand tons as a result of unstable supplies of raw materials observed in January-March 2019 , as well as the launch of a high-performance DP-3 after overhaul with modernization in June 2019.

At the same time, the decrease in pig iron production at MMK amounted to 35 thousand tons as a result of the delayed launch of DP-3.

Steel production in the first quarter of 2020 increased by 12% compared to the same period last year due to increased production at both Mariupol mills. The increase in steel output at Azovstal by 145 thousand tons was the result of an increase in pig iron production, while at MMK the reason for the increase by 84 thousand tons was the redistribution of pig iron in favor of steel production due to the launch of new equipment

In January-March 2020, the production of commercial semi-finished products decreased by 30% compared to the previous quarter – to 637 thousand tons due to a drop in the production of commercial pig iron by 308 thousand tons as a result of the direction of pig iron for steel production and subsequent processing. At the same time, production of commercial slabs increased by 33 thousand tons due to an increase in production at Azovstal by 59 thousand tons, which compensated for the decrease in production at MMK by 26 thousand tons as a result of redirecting slabs for further rolling. In the first quarter of 2020, the production of semi-finished products increased by 2% compared to the same period in 2019. At the same time, the production of commercial pig iron decreased by 117 thousand tons, and the production of slabs increased by 131 thousand. tons – mainly due to the redirection of liquid iron for steel production and products of subsequent processing after the launch of new equipment at MMK.

In addition, in January-March 2020, the production of finished products increased by 38% in relation to the previous quarter. At the same time, the production of flat products increased by 333 thousand tons – up to 1.286 million tons – due to an increase in the output of all types of these products both at the Mariupol mills and at European rolling mills. 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 232 thousand tons.

Also in the first quarter, production of long-rolled products increased by 92 thousand. tons – up to 229 thousand tons – due to the increase in production at Promet Steel and Azovstal by 82 and 10 thousand tons, respectively, as a result of the revival of demand. At the same time, the production of rail products decreased by 11 thousand. tons – up to 10 thousand. tons, production of pipe products increased by 14 thousand tons – up to 42 thousand. tons.

In the 1st quarter of 2020, the production of finished goods increased by 4% compared to the same period in 2019. At the same time, the output of flat products increased by 16 thousand tons, mainly due to an increase in the production of hot-rolled coils at MMK by 133 thousand tons after the completion of the reconstruction of mill 1700 in November 2019, which compensated for the decrease in the production of other flat products at the plant, as well as by Azovstal and European rolling plants. Long products production increased by 38 kt, mainly at Promet Steel, as a result of an increase in the order book. Release of rail products

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