In January-March 2022, compared to the same period in 2021, the Metinvest Group reduced the output of finished products by 12%, or 193,000 tons, to 1.469 million tons, while compared to the fourth quarter of 2021, the output of finished products decreased by 22%, or by 417,000 tons.
Metinvest has said this in a statement, Ukrainian News Agency reports.
Compared to the fourth quarter, the production of flat rolled products decreased by 434,000 tons (to 1,113,000 tons) due to a decrease in production at Mariupol plants; production of long rolled products increased by 27,000 tons (up to 328,000 tons) due to an increase in the order portfolio for Promet Steel; production of rail products decreased by 12,000 tons to 10,000 tons; production of pipe products increased by 2,000 tons to 18,000 tons.
In the first quarter of 2022, compared with the first quarter of 2021, Metinvest reduced steel production by 8%, or 167,000 tons, to 1.962 million tons, compared with the fourth quarter of 2021 - by 25%.
Also in the first quarter of 2022, compared with the first quarter of 2021, the group reduced pig iron production by 15%, or 323,000 tons, to 1.962 million tons, compared with the fourth quarter of 2021 - by 31%.
The drop in production was due to the transfer of a number of Metinvest enterprises from February 24 to hot conservation, including the Azovstal Metallurgical Plant, the Illich integrated iron & steel works (both Mariupol, Donetsk region), Avdiivka and Zaporizhzhia Coke Chemical Plants, which led to the suspension of production activities of these enterprises.
The assets of the group's enterprises in Mariupol and Avdiivka suffered as a result of hostilities.
At the same time, in the first quarter of 2022, the volume of coke production amounted to 783,000 tons, which is 28% and 33% lower than the indicators of the fourth and first quarters of the previous year, respectively.
In the first quarter of 2022, the group's coal concentrate production decreased by 14% compared to the previous quarter - to 1,276,000 tons - as a result of a decrease in production by the Pokrovska coal group due to a decrease in the number of personnel and a violation of supply chains after the outbreak of hostilities in Ukraine.
At the same time, the production of coal concentrate at the mines of the United Coal Company (the United States) remained almost at the level of the previous quarter.
In the first quarter of 2022, the production of total iron ore concentrate decreased by 20% compared to the previous quarter - to 6,128,000 tons - due to the start of full-scale hostilities in Ukraine, which, in turn, led to logistical restrictions against the background of blocking Black Sea ports.
The intra-group consumption of Mariupol plants also sharply decreased.
In the first quarter of 2022, the production of commercial iron ore products remained at the level of the previous quarter - 4,067,000 tons.
At the same time, the production of commodity pellets increased by 34% (to 1,281,000 tons) due to a sharp decrease in intra-group consumption, optimization of the order portfolio at the Northern GOK, as well as the planned repair of the roasting machine at the Central GOK (both Kryvyi Rih, Dnipropetrovsk region) in the fourth quarter of 2021.
At the same time, the production of commodity concentrate decreased by 10% - to 2,786,000 tons - mainly due to a decrease in production at Ingulets GOK.
As Ukrainian News Agency earlier reported, the Metinvest Group is preparing lawsuits against Russia for damages for the destruction of the Illich integrated iron & steel works and Azovstal (both Mariupol, Donetsk region).
In 2021, compared to 2020, the Metinvest Group increased the production of finished products by 23%, or 1,374,000 tons, to 7.233 million tons.
In February, the Metinvest Group temporarily mothballed production in Mariupol - the Illich integrated iron & steel works and Azovstal.
The main shareholders of Metinvest BV are the SCM group (71.24%) and the Smart-Holding group of companies (23.76%), which manage it as a partnership.
100% of SCM shares belong to businessman Rinat Akhmetov.
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