Metinvest steel output rose 5% qoq in 2Q21

Ukraine’s largest steelmaker Metinvest (METINV)
reported on Aug. 4 a 5% qoq increase in steel production at its subsidiaries to
2.229 mmt in 2Q21. Azovstal’s output added 12% qoq to 1.185 mmt in 2Q21, while
Ilyich Steel’s output dropped 3% qoq in 2Q21 to 1.044 mmt, according to the
holding’s quarterly operational update. Year-on-year, Metinvest’s 1H21 crude
steel output added 10% to 4.358 mmt.

 

The holding’s hot iron output in 2Q21, 2.254 mmt, rose
5% qoq, and the 1H21 volume was up 8% yoy to 4.405 mmt.

 

The 2Q21 output of semi-finished products at Metinvest
dropped 10% qoq to 687 kt as its merchant slab output dropped 19% qoq to 395 kt
while its merchant pig iron output added 5% qoq to 292 kt.

 

The holding’s finished product output rose 9% qoq in
2Q21 to 1.819 mmt due to an 11% qoq increase in hot-rolled plate output to 778
kt, a 9% gain in hot-rolled coil production to 556 kt, and a 9% qoq rise in
long product output to 235 kt, which was partially offset by an 11% qoq drop in
cold-rolled coil production to 75 kt.

 

For 1H21, Metinvest’s output of semi-finished products
lost 4% yoy to 1.452 mmt while its finished product output jumped 22% yoy to
3.481 mmt.

 

Total coke production inched up 2% qoq to 1.198 mmt in
2Q21, while merchant coke output lost 9% qoq to 471 kt. For 1H21, total coke
production was flat yoy at 2.368 mmt, while merchant coke output inched up 3%
yoy to 0.991 mmt.

 

Total 2Q21 iron ore concentrate production added 4%
qoq to 8.069 mmt, whereas output of merchant iron ore products rose 2% qoq to
4.924 mmt due to a 16% qoq rise in merchant iron ore concentrate production to
3.312 mmt that was offset by an 18% qoq drop in merchant pellet production to
1.612 mmt.

 

Total 1H21 iron ore concentrate production rose 5% yoy
to 15.864 mmt, whereas output of merchant iron ore products slid 1% yoy to
9.756 mmt.

 

Production of coking coal concentrate at Metinvest
skyrocketed 73% qoq to 1,715 kt in 2Q21 (+76% yoy to 2.705 mmt in 1H21) due to
the consolidation of Pokrovske coal business from March.

 

Dmytro Khoroshun: We expect
Metinvest in 3Q21 to continue producing both steel and iron ore at the high
2Q21 levels to make the most of the period of high prices at the global
markets.

 

It is positive that Metinvest is able to increase
its output of finished products, which is in large part due to its 2016-2019
investments into the upgrade of Mill 1700 and the construction of the new
continuous casting machine No. 4 at Ilyich Steel.