Mechel, one of the leading Russian mining and steel groups, has announced its production and sales results for the third quarter and the first nine months of the current year, stating that the third quarter saw a revival of business activities both in Russia and abroad, which had a positive impact on demand and steel sales.
Accordingly, in the third quarter this year, Mechel produced 852,000 mt of crude steel, eight percent lower compared to the second quarter. Meanwhile, the company’s pig iron production in the third quarter this year decreased by five percent quarter on quarter to 862,000 mt, due to equipment overhauls at Chelyabinsk Metallurgical Plant. Meanwhile, the production of run-of-mine coal totaled 4.27 million mt, down seven percent quarter on quarter. Meanwhile, in the first nine months of the current year, the company produced 2.65 million mt of crude steel, down three percent year on year, while its pig iron production increased five percent year on year to 2.65 million mt. The company’s production of run-of-mine coal totaled 13.13 million mt, up 29 percent year on year.
In the third quarter of the current year, Mechel’s coking coal concentrate sales fell by 12 percent quarter on quarter to 1.43 million mt, due to a slump in shipments to the domestic market - while it redirected volumes to the more profitable Asian markets - with sales to third parties decreasing by 10 percent quarter on quarter to 1.04 million mt during the given period. In the first nine months of the current year, the company’s coking coal concentrate sales grew by five percent year on year to 4.49 million mt, with sales to third parties rising by seven percent year on year to 3.24 million mt during the given period.
The company’s thermal coal sales totaled one million mt in the third quarter, up two percent compared to the second quarter. Mechel’s thermal coal sales in the first nine months totaled 2.86 million mt, up by 16 percent year on year.
In the third quarter of the current year the company’s shipments of iron ore concentrate rose by 29 percent quarter on quarter to 606,000 mt, due to increased output at Korshunov Mining Plant in the summer. The company’s shipments of iron ore concentrate in the first nine months decreased by 14 percent to 1.65 million mt.
The company’s sales of coke went up by six percent quarter on quarter to 643,000 mt in the third quarter of the current year. Increased coke exports had a positive impact on overall coke sales. Moreover, several coke shipments intended for clients in central and eastern Europe are still waiting at Ust-Luga port, which will improve the fourth quarter’s sales dynamics. Meanwhile, the company’s sales of ferrosilicon in the third quarter of the current year fell by 13 percent quarter on quarter to 16,000 mt, due to ongoing equipment repairs at Bratsk Ferroalloy Plant.
In the first nine months of the current year, the company’s total sales of long steel products increased by three percent year on year to 1.94 million mt and sales of flat steel products totaled 342,000 mt, up one percent year on year, while in the third quarter, the volumes remained unchanged compared to the previous quarter.