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Mechel Reports 1H2019 Operational Results

Steel News - Published on Fri, 16 Aug 2019

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Leading Russian mining and metals company Mechel has announced 1H2019 operational results. Mechel CEO Mr Oleg Korzhov said “The steel division ensured pig iron and steel output at the previous quarter’s level. In July we halted one of Chelyabinsk Metallurgical Plant’s blast furnaces for a major overhaul due to be completed by the year’s end. At the same time, we expect that this year’s output of Chelyabinsk Metallurgical Plant’s finished products will remain at the 2018 level. “The eight-percent increase in long rolls sales in 2Q2019 was due to a traditional seasonal spike in demand on construction markets in Russia and the CIS, particularly for rebar. Sales of stainless long rolls remained at the previous quarter’s level. In this accounting period we began shipping off rails on a new annual contract with Russian Railways, which led to a major increase in rail production at our universal rolling mill. Also in the second quarter we began shipping rails on key contracts with Belarusian Railways and Moscow Metro. Early in 3Q2019 the universal rolling mill made an important achievement — it produced its millionth tonne of rails. Thus rails accounted for 40% of the mill’s total output. De facto we became one of the world’s leading rail producers and are ready to participate in infrastructure projects. “In the second quarter, domestic sales of flat rolls went down by 2%. At the same time we increased sales of stainless flats to third parties by 12%. This is a highly profitable business segment and we consider it to be strategically important for the Group. Experts say that importers currently account for 90% of the market for stainless flats. This means that there are opportunities for import substitution in this product range, which we are already using, and we plan to continue moving in this direction.”

Product NameH1'2019H1'2018YoYQ2'2019Q2'2018YoY
Run-of-mine coal8,1369,691-164,6163,52031
Pig Iron1,7371,928-108678700
Electric power generation (thousand kWh)1,755,6931,742,1911857,970897,722-4
Heat power generation (Gcal)2,996,0013,276,148-9975,3722,020,629-52

Product NameH1'2019H1'2018YoYQ2'2019Q2'2018YoY
Long rolls1,2641,410-106576078
Flat rolls227271-16112114-2

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Posted By : Ratan Singh on Fri, 16 Aug 2019
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