Mechel, one of the leading Russian mining and steel groups, has announced its production and sales results for the fourth quarter and the full year of 2021.
Accordingly, in the fourth quarter last year Mechel produced 922,000 mt of crude steel, 3.4 percent higher compared to the third quarter. Meanwhile, the company’s pig iron production in the fourth quarter last year increased by 1.8 percent quarter on quarter to 805,000 mt. The production of run-of-mine coal totaled 2.81 million mt, down 41 percent quarter on quarter. Meanwhile, in 2021 the company produced 3.54 million mt of crude steel, down three percent year on year, due to planned repairs to major equipment in Chelyabinsk Metallurgical Plant’s blast furnace and converter workshops, while its pig iron production decreased 10.4 percent year on year to 3.16 million mt. The company’s production of run-of-mine coal totaled 11.35 million mt, down 33.7 percent year on year.
In the fourth quarter, Mechel’s coking coal concentrate sales fell by 12.4 percent quarter on quarter to 925,000 mt, with sales to third parties decreasing by 7.6 percent quarter on quarter to 556,000 million mt during the given period. Last year, the company’s coking coal concentrate sales fell by 22.5 percent year on year to 4.36 million mt, as Southern Kuzbass Coal Company reduced output, with sales to third parties decreasing by 31.3 percent year on year to 2.72 million mt during the given period.
The company’s thermal coal sales totaled 679,000 mt in the fourth quarter, up 5.6 percent compared to the third quarter. Mechel’s thermal coal sales in 2021 totaled 3.21 million mt, down by 25.1 percent year on year, due to reduced mining volumes at Yakutugol Holding Company.
In the fourth quarter last year, the company’s shipments of iron ore concentrate fell by 32.6 percent quarter on quarter to 247,000 mt. The company’s shipments of iron ore concentrate in the full year decreased by 37.5 percent to 1.35 million mt, due to a mining slump at Korshunov Mining Plant.
The company’s sales of coke went down by 1.5 percent quarter on quarter to 679,000 mt in the fourth quarter, while in 2021 Mechel’s sales of coke increased by 4.1 percent to 2.74 million mt. Meanwhile, the company’s sales of ferrosilicon in the fourth quarter last year rose by 11.1 percent quarter on quarter to 20,000 mt.
In 2021, the company’s total sales of long steel products decreased by 5.4 percent year on year to 2.41 million mt, due to weak demand for rails in the given year, and sales of flat steel products totaled 450,000 mt, down 1.3 percent year on year.