Metinvest Announces Q2 & H1 2019 Operational Results

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Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies (jointly referred to as “Metinvest” or “the Group”), recently announces its operational results for the second quarter and the first six months ended 30 June 2019.

In 2Q 2019, Metinvest’s hot metal production rose by 5% q-o-q to 2,051 kt. Output at Azovstal and Ilyich Steel climbed by 71 kt and 23 kt, respectively, due to the shortage of primary raw materials that were seen at the Mariupol steel mills in January-February this year.

Operational highlights

(kt) 2Q 2019 1Q 2019 ∆ kt ∆ % 1H 2019 1H 2018 ∆ kt ∆ %
Crude steel 1,982 1,941 41 2% 3,923 3,794 129 3%
Iron ore concentrate (total) 7,250 7,204 46 1% 14,454 13,987 467 3%
Coal concentrate (total) 731 674 57 8% 1,404 1,340 64 5%

 

In 2Q 2019, Metinvest’s steel output climbed by 2% q-o-q to 1,982 kt amid an increase of 105 kt in Azovstal’s production due to greater hot metal output, which fully compensated a decrease of 64 kt at Ilyich Steel amid the shutdown of basic oxygen furnace no. 3 for a scheduled major overhaul.

Compared with 1H 2018, Metinvest’s output of hot metal at the Mariupol steel mills dropped by 7% in 1H 2019 to 4,008 kt amid unstable supply of primary raw materials in the reporting period, as well as due to the shutdown of blast furnace no. 6 at Azovstal for a scheduled major overhaul with planned modernisation and the shutdown of blast furnace no. 5 at the plant.

In 1H 2019, Metinvest’s steel output grew by 3% y-o-y to 3,923 kt due to an increase in production of 257 kt at Ilyich Steel, as the hot metal was redirected to make steel and downstream products instead of merchant pig iron due to the commissioning of the new continuous casting machine no. 4. At the same time, steel production at Azovstal decreased by 128 kt due to lower hot metal output.

In 2Q 2019, Metinvest’s output of merchant semi-finished products surged by 31% q-o-q to 815 kt. An increase of 107 kt in merchant pig iron output was due to a decrease in hot metal usage for crude steel production caused by the shutdown of basic oxygen furnace no. 3 at Ilyich Steel. A rise of 85 kt in merchant slab production came amid an increase of 118 kt at Azovstal due to greater steel output, which compensated a decrease of 33 kt at Ilyich Steel.

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In 1H 2019, the Group’s output of merchant semi-finished products fell by 12% y-o-y to 1,439 kt. Production of merchant pig iron dropped by 317 kt, while the output of slabs grew by 112 kt. This was largely due to the redirection of hot metal to make steel and downstream products after the commissioning of new equipment at Ilyich Steel.