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Metalloinvest,
a leading global iron ore and merchant HBI producer and supplier, and one
of the regional producers of high-quality steel, announced its operational
results for the twelve months and the fourth quarter of 2019.
Andrey
Varichev, CEO of Management Company Metalloinvest, commented:
“In
2019, the Company successfully completed one of the stages of the
comprehensive strategic development program aimed to improve product
quality. It was implemented fine screening technology at MGOK. Four
sections of fine screening technology started to operate at full capacity
in the fourth quarter of 2019 that allowed to produce concentrate with a
higher iron ore content. Reconstruction of Pellet Plant at MGOK enabled
the Company to produce premium-quality pellets.
Thereby,
during twelve months of 2019 the Company demonstrated the growth of
production and shipments of high value-added products (pellets and HBI/DRI).
Its share in the total amount of iron ore product shipments comprised 72%.
In
2019, crude steel production decreased by 3.7% y-o-y mainly due to
reconstruction of flexible modular furnaces at Ural Steel and the
development of a new steel production technology.”
In
FY 2019, iron ore production amounted to 40.2 mn tonnes (-0.3% y-o-y). In
Q4 2019, production volumes decreased by 2.2% q-o-q. This was due to a
change in both the product mix and the quality characteristics of the
mined iron ore. Another factor was the production of concentrate with a
higher iron ore content after the four sections of fine screening
technology started to operate at full capacity at MGOK, which in turn led
to a decrease in the physical volume of production.
In
FY 2019, pellet production increased by 1.5% y-o-y and amounted to 28.1 mn
tonnes, as a result of the completion of major maintenance works at Pellet
Plant #2 at LGOK, the reconstruction of Pellet Plant #3 at MGOK, the
optimisation of the duration of maintenance works, and a change in the
pellet production mix. However, in Q4 2019, pellet production decreased by
4.3% q-o-q, primarily due to scheduled major maintenance works at OEMK’s
Pellet Plant.
In
FY 2019, the Company produced 7.9 mn tonnes of HBI/DRI, which represents
0.5% growth y-o-y. Meanwhile, in Q4 2019, production volumes increased by
5.6% q-o-q due to the completion of scheduled major maintenance works at
DRI Plant #1 and DRI Plant #2 at OEMK and at HBI-1 Plant and HBI-2 Plant
at LGOK in Q3 2019, as well as the increase in production volumes at HBI-3
Plant, the most productive facility.
In
FY 2019, the total volume of iron ore product shipments to third parties
increased by 3.3% y-o-y and amounted to 26.7 mn tonnes. In Q4 2019,
shipment volumes grew by 7.2% q-o-q, mainly due to the increase in
supplies of pellets and iron ore concentrate to the domestic market
HVA
iron ore products (pellets and HBI/DRI) prevail in the total volume of
iron ore product shipments and amounted to 72% in FY 2019 and 69% in Q4
2019.
The
share of iron ore product shipments to the domestic market amounted to 53%
in FY 2019 (compared to 65% in FY 2018) and 54% in Q4 2019.
The
Company increased the volume of export supplies in FY 2019 by 39.7% y-o-y
mainly due to the increase in supplies to Asia – its share comprised 22%
of total shipments in FY 2019 compared to 4% in FY 2018. In Q4 2019,
export supplies decreased by 8.1% q-o-q as a result of the reallocation of
shipments to the domestic market.
T1 Production by product
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Q3 2019
|
Q4 2019
|
Change
|
|
Iron ore
|
10,074
|
10,108
|
10,014
|
10,100
|
9,893
|
10,124
|
9,995
|
10,347
|
9,602
|
10,063
|
10,404
|
10,173
|
-2.2%
|
|
Pellets
|
5,982
|
6,268
|
6,323
|
6,514
|
6,691
|
6,956
|
7,126
|
6,885
|
6,840
|
7,230
|
7,157
|
6,848
|
-4.3%
|
|
HBI/DRI
|
1,469
|
1,830
|
1,742
|
1,943
|
2,021
|
1,997
|
1,810
|
1,997
|
2,020
|
2,029
|
1,857
|
1,961
|
5.6%
|
T2 Shipments by product
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Q3 2019
|
Q4 2019
|
Change
|
|
Iron ore
|
2,793
|
2,614
|
2,548
|
2,435
|
1,880
|
1,807
|
1,581
|
2,305
|
1,624
|
1,547
|
1,996
|
2,268
|
13.60%
|
|
Pellets
|
3,243
|
3,028
|
3,041
|
3,509
|
3,085
|
3,560
|
3,889
|
3,480
|
3,336
|
3,554
|
3,894
|
4,087
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5.00%
|
|
HBI/DRI
|
595
|
971
|
994
|
1,012
|
1,111
|
1,159
|
943
|
1,035
|
1,224
|
1,098
|
1,006
|
1,041
|
3.50%
|
|
Other
|
6
|
11
|
9
|
3
|
11
|
9
|
9
|
5
|
12
|
16
|
16
|
10
|
-37.50%
|
|
Total shipments
|
6,637
|
6,624
|
6,592
|
6,959
|
6,087
|
6,536
|
6,422
|
6,825
|
6,197
|
6,214
|
6,911
|
7,407
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7.20%
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T3 Shipments by region
|
tonnes '000
|
Q1 2017
|
Q2 2017
|
Q3 2017
|
Q4 2017
|
Q1 2018
|
Q2 2018
|
Q3 2018
|
Q4 2018
|
Q1 2019
|
Q2 2019
|
Q3 2019
|
Q4 2019
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Change
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|
Russia
|
3,488
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3,606
|
4,157
|
4,964
|
4,290
|
4,380
|
3,948
|
4,161
|
3,528
|
3,287
|
3,211
|
4,006
|
24.80%
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|
Europe
|
2,227
|
2,044
|
1,265
|
1,205
|
1,093
|
1,338
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1,591
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1,451
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1,604
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1,455
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1,203
|
1,111
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-7.60%
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Asia
|
298
|
285
|
645
|
219
|
254
|
61
|
251
|
493
|
702
|
969
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2,203
|
1,947
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-11.60%
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|
MENA
|
344
|
336
|
359
|
313
|
281
|
413
|
357
|
416
|
199
|
355
|
139
|
194
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39.60%
|
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Others
|
280
|
352
|
165
|
257
|
169
|
345
|
274
|
304
|
163
|
148
|
155
|
150
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-3.20%
|
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Total shipments
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6,637
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6,624
|
6,592
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6,959
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6,087
|
6,536
|
6,422
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6,825
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6,197
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6,214
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6,911
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7,407
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7.20%
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Official
Document
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