By KYIV. Nov 22 (Interfax-Ukraine) – In January-September this year, Metinvest reduced steel production by 62% compared to the same period last year, to 2.668 million tonnes, according to a press release from the parent company Metinvest B.V. on Monday.
According to it, production of cast iron decreased by 65%, to 2.473 million tonnes, and coke by 60%, to 1.368 million tonnes.
At the same time, it is specified that in connection with the start of Russian large-scale military aggression against Ukraine from February 24, 2022, Metinvest decided to halt the manufacturing activities of its assets in Mariupol, Avdiyivka and Zaporizhia, including Azovstal, Illich Steel, Avdiyivka Coke and Zaporizhia Coke. The Group’s plants in Zaporizhia resumed their production operations later. Because of the hostilities, the Group’s facilities in Mariupol and Avdiyivka have been affected and Mariupol has been temporarily occupied.
It is also noted that the Group’s plants in Ukraine, apart from those in Mariupol and Avdiyivka, continue to operate at different capacity utilisation levels subject to security, logistics and economic factors.
In 3Q 2022, Metinvest’s output of hot metal and crude steel was 221,000 tonnes and 256,000 tonnes, respectively, down 48% and 43% q-o-q. The decline in volumes was driven by the shutdown of blast furnace No. 12 at Kamet Steel in early May, as well as operations at blast furnace No. 9 subject to demand and logistical constraints.
In 3Q 2022, Metinvest’s output of merchant semi-finished products decreased by 55% q-o-q to 111,000 tonnes, driven by the abovementioned lower production of hot metal at Kamet Steel. In 9M 2022, the Group’s output of merchant semi-finished products fell by 64% y-o-y to 882,000 tonnes because of the slump in hot metal output. This was partly compensated by the consolidation of merchant billet production at Kamet Steel, the effect of which in 9M 2022 was 390,000 tonnes.
In 3Q 2022, Metinvest’s output of finished products rose by 13% q-o-q to 466,000 tonnes. In particular: output of flat products increased by 64,000 tonnes to 231,000 tonnes amid a stable supply of slabs for the Italian re-rolling plants. Output of long products decreased by 12,000 tonnes to 235,000 tonnes because of irregular deliveries of billets from Kamet Steel to Promet Steel in Bulgaria.
In 9M 2022, the Group’s output of finished products decreased by 56% y-o-y to 2.350 million tonnes. In particular: output of flat products declined by 2.917 million tonnes to 1.513 million tonnes amid the absence of production from the Mariupol steelmakers since late February 2022, as well as unstable supplies of slabs for the Italian rerolling plants. Output of long products increased by 21,000 tonnes to 809,000 tonnes following the acquisition of re-rolling facilities by Kamet Steel, which fully compensated the absence of Azovstal’s volumes since late February 2022 and the lower output at Promet Steel for the abovementioned reasons. Output of rail products decreased by 15,000 tonnes to 10,00 tonnes and output of tubular products fell by 84,000 tonnes to 18,000 tonnes.
In 3Q 2022, Metinvest’s coke output remained almost unchanged q-o-q at 293,000 tonnes. In 9M 2022, the Group’s coke output slumped by 60% y-o-y to 1.368 million tonnes, as the hostilities in Ukraine affected the operations of its coke-making assets.
