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Metalloinvest.

Metalloinvest is a leading global producer and supplier of HBI and iron ore products, and a regional producer of high quality steel.

Metalloinvest extracts iron ore from the second largest measured iron ore reserve base in the world with approximately 14.2 billion tonnes of proven and probable reserves on a JORC (IMC Montan) equivalent basis and about 150 years of reserve life.

The Company is:

* the world leading producer of merchant HBI,

* the third largest producer of pellets,

* the largest iron ore company in Russia and the CIS,

* producer of high quality steel.

The Company is a global producer of HBI and processes a large proportion of its iron ore into high added value products, such as pellets and HBI/DRI.

According to the Company's data, share of Metalloinvest on the Russian market in 2016 accounted for 37% for iron ore concentrate and sintering ore, 59% for pellets and 100% for HBI/DRI. The Company is also a leading regional producer of niche steel products.

Metalloinvest comprises of leading iron ore production facilities in Russia -- Lebedinsky GOK and Mikhailovsky GOK; steel mills--Oskol Elektrometallurgical Plant and Ural Steel; a ferrous scrap enterprise -- Ural Scrap Company.

Metalloinvest's sales and marketing operations are centralised. The managing company coordinates the Company's operations in the market, their production policy and external shipments, thereby achieving synergies and increasing the efficiency of production.

The Company strives to maintain a favourable social environment in the regions where it is present and at each of its plants. Metalloinvest provides stable employment for more than 62 thousand employees and assists in solving actual problems in the regions wh ere it operates. The primary principle of the Company's social policy is the "unity of purpose"--as stated in the Memorandum on Corporate Social Responsibility of Metalloinvest.

http://www.metalloinvest.com/en/about/company-profile/

Metalloinvest announces operational results for Q2 2019.

31/7/2019

Metalloinvest, a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, today announces its operational results for the second quarter of 2019.

Management comments.

Andrey Varichev, CEO of Management Company Metalloinvest, commented:

"In line with our strategy to increase the share of high value-added products in the output, in Q2 2019 the Company increased pellet production and shipments by 6% and 7%, respectively, compared to the previous quarter. As a result, the share of HVA iron ore products, comprising pellets and HBI/DRI, increased to 75% of our total iron ore product shipments. At the same time, sales of iron ore products to Asia significantly increased in Q2 2019 and reached 16% of total iron ore product shipments, rising from 11% in Q1 2019. The share of HVA products in steel shipments continues to gradually increase and was recorded at 46%, with the main market being domestic customers."

Iron ore products.

Production.

* In Q2 2019, iron ore production remained almost flat as compared to Q2 2018 (-0.6% y-o-y ) and amounted to 10.1 mn tonnes. At the same time, the growth in production volumes by 4.8% q-o-q was driven by an increase in productivity due to the processing of higher quality ore and the completion of scheduled maintenance works.

* In Q2 2019, pellet production increased by 3.9% y-o-y and 5.7% q-o-q and amounted to 7.2 mn tonnes. The growth in pellet production was due the completion of scheduled maintenance works, as well as an increase in productivity due to a change in the pellet product mix.

* HBI/DRI production remained flat q-o-q (2.0 mn tonnes) and was 1.6% higher y-o-y mainly due an increase in productivity of the Company's HBI plants Shipments.

* In Q2 2019, the total volume of iron ore product shipments to third parties remained flat q-o-q and amounted to 6.2 mn tonnes

* HVA iron ore product (pellets and HBI/DRI) shipments increased to 75% of the total amount of iron ore product shipments in Q2 2019, compared with 74% in Q1 2019 and 72% in Q2 2018.

* In Q2 2019, the share of iron ore product shipments to the domestic market amounted to 53%, compared with 57% in Q1 2019 and 67% in Q2 2018.

* The Company increased the volume of export supplies during the reporting period by 9.7% q-o-q and 35.8% y-o-y mainly due to the increase in supplies to Asia (the share of shipments to Asia comprised 16% in Q2 2019, compared with 11% in Q1 2019 and 1% in Q2 2018).

Pig iron and steel products.

Production.

* In Q2 2019, the output of hot metal remained almost flat q-o-q (+0.9%) and amounted to 0.7 mn tonnes. The Company decreased hot metal production by 7.2% y-o-y as a result of maintenance and repair works at Ural Steel in Q2 2019

* Crude steel production increased in Q2 2019 by 5.1% q-o-q to 1.2 mn tonnes. This growth was largely a result of plant reconstruction and hot tests of FMF at Ural Steel in Q1 2019. Crude steel output was decreased by 1.1% y-o-y due to the development of FMF steel production technology.

Shipments.

* In Q2 2019, pig iron shipments to third parties decreased to 0.4 mn tonnes compared with 0.5 mn tonnes in Q1 2019, partly owing to the growth of internal consumption for steel production

* The share of HVA steel product shipments amounted to 46.0% in Q2 2019, compared with 45.5% in Q1 2019 and 44.6% in Q2 2018

* In Q2 2019, pig iron and steel product shipments was partially reoriented to the Russian market (its share increased to 34%, compared with 29% in Q1 2019 and 28% in Q2 2018), mainly due to an increase in shipments to ChelPipe. Thus, export shipments of pig iron and steel product in Q2 2019 decreased by 12.6% q-o-q and 16.7% y-o-y

http://www.metalloinvest.com/en/media/press-releases/414654/
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Title Annotation:Leading Companies
Publication:Russia Metal & Mining
Geographic Code:4EXRU
Date:Aug 15, 2019
Words:988
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