Metinvest’s Operations Hit by Russian Invasion
Strategic Research Institute
Published on :
11 Aug, 2022, 6:43 am
Ukraine’s leading steel maker Metinvest has announces that its crude steel output in April-June 2022 quarter & H1 of 2022 reduced to 0.450 million tonnes & 2.412 million tonnes respectively. Metinvest said “On 24 February 2022, Russia launched a full-scale military invasion of Ukraine. As a result, Metinvest decided to halt the manufacturing activities of its assets in Mariupol, Avdiivka and Zaporizhzhia, including Azovstal, Ilyich Steel, Avdiivka Coke and Zaporizhia Coke. The Group’s plants in Zaporizhzhia resumed their production operations later. Because of the hostilities, the Group’s facilities in Mariupol and Avdiivka have been affected and Mariupol has been temporarily occupied. Once the active phase of the war stops, reliable communication channels with the metallurgical plants in Mariupol are restored and Ukraine regains control over the city, the Group should be able to assess the impact of the hostilities on these facilities. When such assessment becomes possible, Metinvest will provide further updates on its plans to resume their operations.”
April-June 2022 Quarter
Crude steel - 0.450 million tonnes, down 77% YoY
Azovstal -0 million tonnes, down 100% YoY
Ilyich Steel – 0 million tonnes, down 100% YoY
Kamet Steel – 0.450 million tonnes, down 26% YoY
Iron ore concentrate - 2,676 million tonnes, down 56% YoY
Coking coal concentrate 1.154 million tonnes, down 10% YoY
H1 of 2022
Crude steel - 2,412 million tonnes, down 45% YoY
Azovstal – 0.683 million tonnes, down 70% YoY
Ilyich Steel – 0.672 million tonnes, down 68% YoY
Kamet Steel – 1.057 million tonnes
Iron ore concentrate - 8,804 million tonnes, down 45% YoY
Coking coal concentrate - 2,430 million tonnes, down 10% YoY
In Q2 of 2022, the output of merchant semi-finished products decreased by 52% QoQ to 0.249 million tonnes, largely due to a slump in hot metal production for the reasons listed above. In H1 of 2022, the output of merchant semi-finished products fell by 47% YoY to 0.771 million tonnes because of a substantial drop in hot metal production. This was partly compensated by the output of merchant billets at Kamet Steel, the effect of which in H1 of 2022 was 0.444 million tonnes.
In Q2 of 2022, the output of finished products plummeted by 72% QoQ to 0.414 million tonnes. In particular, the output of flat products decreased by 0.946 million tonnes to 0.167 million tonnes because of the lack of production from the Mariupol steelmakers since late February 2022 and the shutdown of the Italian re-rolling plants for a scheduled maintenance in May 2022 in the absence of stable slab supplies & the output of long products decreased by 0.81 million tonnes to 0.247 million tonnes because of a production decline at Kamet.
In H1 of 2022, the output of finished products decreased by 46% YoY to 1.884 million tonnes. In particular, the output of flat products declined by 1.658 million tonnes to 1.281 & the output of long products increased by 0.125 million tonnes to 0.575 million tonnes following the acquisition of re-rolling facilities by Kamet Steel, which fully compensated the lack of Azovstal volumes since the end of February 2022 and the lower output at Promet Steel. The output of railway products decreased by 2,000 tonnes to 10,000 tonnes & the output of tubular products fell by 62,000 tonnes to 18,000 tonnes.