Metinvest cuts production of finished products by 18% to 2.3 million tons in 2023

In 2023, the Metinvest group reduced the production of finished products by 18%, or by 0.486 million tons, year over year to 2.291 million tons.

This follows from a statement by Metinvest, the Ukrainian News agency reports.

In particular, in 2023, the production of flat-rolled products decreased by 36% to 1,100,000 tons due to the shutdown of the Mariupol mills at the end of February 2022, which was partially compensated by an increase in the production of hot-rolled thick sheets at rolling mills in Italy and Great Britain against the background of the establishment of slab supplies from third parties, including slabs from Zaporizhstal.

At the same time, the production of long-rolled products increased by 17% to 1,191,000 tons thanks to the stabilization of billet production at Kametstal and the normalization of supplies to Promet Steel in Bulgaria.

There was no production of rail and pipe products, as the products were manufactured at the Mariupol plants.

In 2023, the production of iron and steel amounted to 1,765,000 tons and 2,025,000 tons, respectively, which is less than in 2022 by 36% and by 31%.

Thus, the stoppage of production at the Mariupol plants from the end of February 2022 was partially compensated by increased production volumes at Kametstal, including due to the stabilization of the situation with electricity supplies from the end of January 2023.

In 2023, the production of total iron ore concentrate increased by 4% compared to the previous year to 11,092,000 tons due to increased production against the background of the unblocking of Ukrainian Black Sea ports in the third quarter of the reporting year.

As a result, as well as thanks to the stabilization of electricity supply from the end of January 2023, the production of marketable iron ore products increased by 18% to 9,354,000 tons.

At the same time, almost all commercial iron ore products were produced with a high iron content. Due to the reorientation of the order portfolio in favor of pellets, their production increased by 66% to 5,283,000 tons. At the same time, the production of commercial concentrate decreased by 14% to 4,071,000 tons.

In 2023, coal concentrate production increased by 10% compared to 2022 to 5,455,000 tons. This was achieved mainly as a result of an increase in production at the Pokrovsky coal group by 26% to 3,109,000 tons against the background of improvement in the quality characteristics of Ukrainian coking coal on average during 2023 compared to the previous period.

In 2023, the volume of coke production decreased by 25% compared to the previous year to 1,241,000 tons due to the shutdown of production at Azovstal and the Avdiyivka Coke Chemical Plant from the end of February 2022.

As the Ukrainian News agency earlier reported, Metinvest ended 2022 with a loss of USD 2.193 billion against a net profit of USD 4.765 billion for 2021.

In 2022, the group's revenue decreased by 2.2 times, or by USD 9.7 billion, to USD 8.288 billion.

In 2022, the Metinvest group reduced the production of finished products by 2.6 times, or by 4.456 million tons, year over year to 2.777 million tons.

The main shareholders of the Metinvest group are SCM (71.24%) and the Smart Holding group (23.76%), which participate in the management of Metinvest on a partnership basis.

100% of SCM shares belong to businessman Rinat Akhmetov.