Mechel, one of the leading Russian mining and steel groups, has said that in the third quarter of 2009 it registered increased demand for its products, which allowed nearly all of its subsidiaries to reach the pre-crisis output level.
"The third quarter was the most successful period of 2009 for us. Increased demand for our products resulting in the recovery of our facilities' utilization rates as early as the second quarter. In the third quarter, nearly all of our subsidiaries reached the pre-crisis level in output volumes, while at some of them the output was even higher," Mechel's senior vice president Vladimir Polin commented.
Accordingly, in Q3 2009 Mechel saw a 57 percent increase in its coal production to 5.45 million mt (including a 109 percent increase in its coking coal production to 3.74 million mt), a 44 percent rise in its coal concentrate output to 3.04 million mt (including a 67 percent increase in its coking coal concentrate production to 2.64 million mt), a 13 percent growth in its iron ore concentrate production to 1.22 million metric tons, and a 35 percent increase in its coke production to 977,000 mt, all compared with Q2 2009.
The capacity utilization rate of Mechel's mining division increased to 75-80 percent of the pre-crisis level, surpassing the forecast Mechel made in July. With growth in Mechel's export activity, including successful continuation of partnership with its Asia-Pacific customers, who concluded contracts with Mechel in the first half of the year, the company's mining plants currently have enough orders.
In its steel segment, in Q3 2009 Mechel saw an 11 percent increase in its pig iron production, a six percent rise in its crude steel production and a seven percent growth in its finished steel products output (including an 11 percent increase in flats output, a one percent rise in longs output, and a 16 percent growth in semis production) quarter on quarter. The respective figures in metric tons were 1.07 million, 1.48 million, and 1.46 million (including 91,000 of flats, 812,000 of longs and 554,000 of semis). During the period in question, the capacity utilization rate at the most of Mechel's steel plants almost reached 100 percent of the pre-crisis level.
"At the end of last year, our targets comprised the maintaining of sales at the levels of demand, general reduction of costs and minimization of decrease in output volumes. Today, we may speak about growth and improvement in our market positions. We intend to further develop the priority directions of our work, thus enforcing our competitive advantages and building a foundation for new achievements," Mr. Vladimir Polin stated.