OPERATIONAL HIGHLIGHTS [1]
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Crude steel | 1 969 | 1 825 | 144 | 8% | 3 794 | 3 654 | 140 | 4% |
Iron ore concentrate (total) | 7 062 | 6 924 | 138 | 2% | 13 987 | 13 649 | 338 | 2% |
Coal concentrate (total) | 707 | 633 | 74 | 12% | 1 340 | 1 317 | 23 | 2% |
METALLURGICAL SEGMENT
Hot metal production
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Hot metal | 2 136 | 2 156 | -20 | -1% | 4 292 | 3 761 | 531 | 14% |
Azovstal | 1 013 | 987 | 26 | 3% | 2 000 | 1 898 | 102 | 5% |
Ilyich Steel | 1 123 | 1 169 | -46 | -4% | 2 292 | 1 863 | 429 | 23% |
Crude steel production
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Crude steel | 1 969 | 1 825 | 144 | 8% | 3 794 | 3 654 | 140 | 4% |
Azovstal | 1 159 | 1 022 | 137 | 13% | 2 181 | 2 166 | 15 | 1% |
Ilyich Steel | 810 | 803 | 7 | 1% | 1 613 | 1 488 | 125 | 8% |
In 2Q 2018, the Group’s hot metal output remained around the level of the previous quarter at 2,136 kt. Production at Azovstal increased by 26 kt, partly offsetting a decrease at Ilyich Steel of 46 kt, caused by a scheduled major overhaul on blast furnace no. 3, which lasted for 17.5 days.
In 2Q 2018, Metinvest’s crude steel production rose by 8% q-o-q to 1,969 kt. This was mainly due to an increase in steel output at Azovstal of 137 kt, following the shutdown of basic oxygen furnace no. 1 in 1Q 2018 for a major overhaul lasting 28 days.
In 1H 2018, hot metal production at the Mariupol sites rose by 14% y-o-y to 4,292 kt, as that at Ilyich Steel and Azovstal climbed by 429 kt and 102 kt, respectively. This was due to stable supplies of raw materials, which had been irregular during the corresponding period of 2017, so production of steel and merchant pig iron increased.
Metal product output [2]
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Semi-finished products | 857 | 787 | 70 | 9% | 1 644 | 1 150 | 494 | 43% |
Pig iron | 401 | 474 | -73 | -15% | 875 | 546 | 329 | 60% |
Slabs | 456 | 313 | 143 | 46% | 769 | 604 | 165 | 27% |
Finished products | 1 473 | 1 476 | -3 | 0% | 2 949 | 2 787 | 162 | 6% |
Flat products | 1 232 | 1 199 | 33 | 3% | 2 431 | 2 374 | 57 | 2% |
Long products | 196 | 231 | -35 | -15% | 427 | 318 | 109 | 34% |
Railway products | 18 | 11 | 7 | 64% | 29 | 23 | 6 | 26% |
Tubular products | 27 | 35 | -8 | -23% | 62 | 72 | -10 | -14% |
TOTAL | 2 330 | 2 263 | 67 | 3% | 4 593 | 3 937 | 656 | 17% |
In 2Q 2018, the Group’s output of merchant semi-finished products rose by 9% q-o-q to 857 kt. At the same time, the product mix changed, output of slabs increasing by 143 kt and that of merchant pig iron decreasing by 73 kt.
In 1H 2018, Metinvest’s output of merchant semi-finished products climbed by 43% y-o-y to 1,644 kt, as production of merchant pig iron and slabs increased by 329 and 165 kt, respectively, amid a favourable market situation.
In 2Q 2018, the Group’s output of finished products remained unchanged q-o-q at 1,473 kt:
- Output of flat products increased by 33 kt to 1,232 kt, due to rises in production at Azovstal and the European re-rolling mills of 25 kt and 28 kt, respectively, which offset a 20 kt decrease at Ilyich Steel;
- Output of long products dropped by 35 kt to 196 kt amid decreases at Promet Steel and Azovstal of 26 kt and 9 kt, respectively, caused by a lack of orders for rolled sections;
- Output of rail products climbed by 7 kt to 18 kt due to more orders from the Ukrainian railway operator, Ukrzaliznytsya;
- Output of pipes edged down by 8 kt to 27 kt.
In 1H 2018, Metinvest’s output of finished products increased by 6% y-o-y to 2,949 kt:
- Amid a market recovery, output of flat products increased by 57 kt to 2,431 kt, mainly due to greater production of plates at Ilyich Steel (215 kt) and the European re-rolling mills (18 kt), which offset a decrease in plate output at Azovstal (130 kt) and coil production at Ilyich Steel (46 kt);
- Output of long products increased by 109 kt to 427 kt, as a result of higher production at Promet Steel, as stable supplies of square billets were secured;
- Output of rail products rose by 6 kt to 29 kt due to more orders;
- Production of pipes decreased by 10 kt to 62 kt.
Coke production [3]
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Coke (total) | 1 317 | 1 346 | -29 | -2% | 2 664 | 2 131 | 533 | 25% |
Coke (merchant) | 437 | 362 | 75 | 21% | 800 | 439 | 361 | 82% |
In 2Q 2018, the Group produced 1,317 kt of coke, down 2% q-o-q. However, the y-o-y figure increased by 25%, driven by a 546 kt rise in output at Avdiivka Coke, which offset a minor decrease at Azovstal. Avdiivka Coke has had eight coke oven batteries in operation since May 2017.
MINING SEGMENT
Iron ore concentrate and pellet output [4]
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Iron ore concentrate (total) | 7 062 | 6 924 | 138 | 2% | 13 987 | 13 649 | 338 | 2% |
Iron ore products (merchant) | 3 931 | 3 605 | 326 | 9% | 7 536 | 7 751 | -215 | -3% |
Iron ore concentrate | 1 910 | 1 882 | 28 | 1% | 3 792 | 5 163 | -1 371 | -27% |
Pellets | 2 021 | 1 723 | 298 | 17% | 3 744 | 2 588 | 1 156 | 45% |
In 2Q 2018, Metinvest’s overall iron ore concentrate production rose by 2% q-o-q to 7,062 kt, mainly amid increases in output of 63 kt at Northern GOK and 73 kt at Ingulets GOK.
In 2Q 2018, the Group’s output of merchant iron ore products climbed by 9% q-o-q to 3,931 kt due to:
- an increase in merchant concentrate output of 28 kt due to higher overall concentrate output;
- a rise in merchant pellet production of 298 kt, driven by an increase in production at Northern GOK of 392 kt, which offset a decrease at Central GOK of 94 kt. The greater output at Northern GOK stemmed from a drop in internal consumption of 199 kt and a gain in output of 193 kt, amid low output in 1Q 2018 due to a scheduled major overhaul of the Lurgi 552-B roasting machine. The lower output at Central GOK was caused by a scheduled major overhaul of the OK-324 roasting machine in April-May 2018.
In 1H 2018, Metinvest’s iron ore concentrate production rose by 2% y-o-y to 13,987 kt. Amid more orders for pellets and greater intragroup consumption of concentrate, output of saleable pellets soared by 45% to 3,744 kt, while that of saleable concentrate dropped by 27% to 3,792 kt.
Coal concentrate production [5]
(kt)
| 2Q 2018
| 1Q 2018
| ∆ kt
| ∆ %
| 1H 2018
| 1H 2017
| ∆ kt
| ∆ % |
---|---|---|---|---|---|---|---|---|
Coal concentrate (total) | 707 | 633 | 74 | 12% | 1 340 | 1 317 | 23 | 2% |
Coal concentrate (merchant) | 31 | 15 | 16 | 107% | 47 | 337 | -290 | -86% |
In 2Q 2018, the Group’s coal concentrate output grew by 12% q-o-q to 707 kt amid a production ramp-up at United Coal’s new section at Carter Roag mine. In 1H 2018, Metinvest’s coal concentrate output increased by 2% y-o-y to 1,340 kt.
Pig iron – merchant pig iron
Flat products include hot-rolled plates, as well as hot-rolled, cold-rolled and hot-dip galvanised sheets and coils
Long products include hot-rolled sections (light, medium, heavy), rebar, merchant bars and wire rod
Rail products include light and heavy rails and rail fasteners
Tubular products include other ERW (electric resistance welded) pipes and seamless pipes
[1] Figures for 2017 have been updated: production at assets, control over which has been lost since March 2017, was excluded.
[2] Excludes intragroup sales and intragroup consumption; figures for 2017 pig iron production have been updated
[3] Merchant coke production figures exclude intragroup sales and consumption
[4] Figures for the production of merchant iron ore products exclude intragroup sales and consumption.
[5] Coal concentrate (total) production figures present coal production in equivalent of coal concentrate. Merchant coal concentrate production figures exclude intragroup sales and consumption.