Home
/
News
/

Iron ore production at Metinvest falls 7% m/m in August

Iron ore production at Metinvest falls 7% m/m in August

10 September 2014

The three iron ore miners of Ukrainian steel giant Metinvest have reported differing operating results for August. While Ingulets Iron Ore (unlisted) and Central Iron Ore (CGOK UK) kept almost stable total iron ore concentrate output last month – at 1.134 mmt (+0.4% m/m, -2.9% yoy) and 530 kt (flat m/m, -1% yoy) respectively – the holding’s largest iron ore miner Northern Iron Ore (SGOK UK) endured a sharp plunge in production to 982 kt of total iron ore concentrate (-18% m/m, -22% yoy). Pellet output by Northern Iron Ore plummeted even deeper to 492 kt (-31% m/m, -50% yoy). In September, Northern Iron Ore plans to reduce pellet production by another 16% to 415 kt, according to Metal Courier. The operating plans of the two other iron ore subsidiaries are to keep production volumes stable so far.

 

Roman Topolyuk: Having been largely oriented on the local market, Northern Iron Ore has taken the largest hit from the recent loss of Ukrainian customers among the three miners. We estimate the marketable iron ore product output by Metinvest fell 7% m/m in August to 2.6 mmt (-10% yoy). In 8M14, the company endured a 2% decrease in marketable iron ore product output to 22.3 mmt.

 

In the short term, the company has an option of improving this negative trend by loading more of Northern Iron Ore’s pellet production capacities with export contracts. In mid- to long-term, we are keeping our view of deteriorating production volumes and margins in Metinvest’s mining segment due to global oversupply of iron ore.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...