2024-08-13T16:08:00+03:00 Economy 2024-08-20T04:01:17+03:00

Ukrainian news

Metinvest boosts production of finished products by 4% to 1.2 million tons in H1

Metinvest boosts production of finished products by 4% to 1.2 million tons in H1

In the first six months of 2024, the Metinvest group increased the production of finished products by 4%, or by 45,000 tons, year over year to 1.189 million tons, while compared to the first quarter of 2024, the production of finished products increased by 3%, or by 20,000 tons.

This follows from a statement by Metinvest, the Ukrainian News agency reports.

In particular, in the first half of the year, the production of flat rolled products decreased by 6% to 545,000 tons - mainly due to the lack of marginal orders for hot-rolled coils.

As a result, Ferriera Valsider in Italy completely refocused on the production of hot-rolled thick sheet.

At the same time, the production of galvanized cold-rolled coils increased by 2.3 times due to the resumption of the 4th inductor at Unisteel in Ukraine after it was stopped for major repairs in the 2nd quarter of last year.

The production of long rolled products increased by 14% to 644,000 tons - due to the increase in the portfolio of orders for the products of Kametstal and Promet Steel.

In the first half of 2024, pig iron production amounted to 884,000 tons, which is 4% less than in the same period last year, due to the overhaul of blast furnace No. 9 at Kametstal.

At the same time, steel production remained almost at the level of the previous period and amounted to 1,042,000 tons.

Against the backdrop of the unblocking of Ukrainian Black Sea ports from August 2023 and the increase in the portfolio of pellet orders, in the first half of 2024, compared to the same period in 2023, the production of total iron ore concentrate increased by 87% to 8,892,000 tons, the production of marketable iron ore products - 2 times to 8,216,000 tons, production of commercial iron ore concentrate - 3.4 times to 5,023,000 tons, and commercial pellets - by 25% to 3,193,000 tons.

"In connection with the limited production of electricity in Ukraine due to Russian shelling from mid-March 2024 and the high demand for imported electricity, its cost affects the workload and configuration of the group's mining and processing plants. Metinvest distributes the workload of these enterprises, taking into account availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production," the message says.

As a result, in the 2nd quarter compared to the 1st quarter, the production of total iron ore concentrate decreased by 17% to 4,033,000 tons, the production of marketable iron ore products - by 13% to 3,814,000 tons, the production of iron ore concentrate - by 22% to 2,205,000 tons.

In the first half of the year, compared to the same period in 2023, the group's coal concentrate production decreased by 31% to 2,085,000 tons.

Such changes occurred mainly due to a 39% decrease in production volumes at United Coal Company (United States) in connection with the cessation of production at the Carter Roag mines and a decrease in production at some Wellmore mines.

Also, the production of coal concentrate at the Pokrovske coal group decreased by 25% mainly due to the optimization of mining operations due to changes in mining and geological conditions.

As the Ukrainian News agency earlier reported, in 2023, the Metinvest group reduced the production of finished products by 18%, or by 0.486 million tons, year over year to 2.291 million tons.

Also, in 2023, the group reduced the loss by 11.3 times, or USD 2 billion, year over year to USD 194 million.

The main shareholders of the Metinvest group are SCM (71.24%) and the Smart Holding group (23.76%), which participate in the management of Metinvest on a partnership basis.

100% of SCM shares belong to businessman Rinat Akhmetov.