Mechel, one of the leading Russian mining and steel groups, has announced that in the fourth quarter of 2014 its crude steel output increased by three percent to 1.08 million mt, while its pig iron output also rose by three percent to 1.04 million mt, both quarter on quarter. Mechel's run-of-mine coal production in the fourth quarter declined by three percent compared to the third quarter to 5.6 million mt.
In 2014, the company's crude steel output amounted to 4.27 million mt, falling eight percent, due to a decrease in electric furnace steel production at Chelyabinsk Metallurgical Plant and Izhstal, while its pig iron output increased by five percent to 3.95 million mt, both year on year.
Mechel produced 2.36 million mt of coking coal concentrate in the fourth quarter, down three percent compared to the previous quarter, while its coking coal concentrate output in 2014 decreased by eight percent to 10.1 million mt.
"We are currently continuing talks with banks on restructuring our debt, which we hope to complete shortly. Nevertheless, in the mining segment we began restoring our operational results which slumped with the halting of Mechel Bluestone, by increasing production at the Elga deposit. We improved the operation and sales planning system for our steel products and also increased our own output of high value-added products while decreasing sales of third-party products," said Mechel CEO Oleg Korzhov.