OREANDA-NEWS. August 05, 2013. Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies (jointly referred to as “Metinvest” or “the Group”), announces its operational results for the second quarter and the first six months ended 30 June 2013.

2Q 2013 HIGHLIGHTS

Production of crude steel up 1% q-o-q to 3,138 thousand tones

Production of iron ore concentrate virtually unchanged q-o-q at 9,339 thousand tones

Mining of coking coal up 5% q-o-q to 3,028 thousand tones

1H 2013 HIGHLIGHTS

Production of crude steel down 8% y-o-y to 6,239 thousand tones

Production of iron ore concentrate up 2% y-o-y to 18,664 thousand tones

Mining of coking coal down 3% y-o-y to 5,924 thousand tones

METALLURGICAL DIVISION
In 2Q 2013, Metinvest produced 2,873 thousand tonnes of hot metal, up 6% q-o-q, and 3,138 thousand tonnes of crude steel, up 1%. The latter increase was primarily driven by an increase in production at Yenakiieve Iron and Steel Works (“Yenakiieve Steel”) of 100 thousand tonnes, offset by a decrease at Ilyich Iron and Steel Works (“Ilyich Steel”) of 71 thousand tonnes.

In 1H 2013, crude steel production dropped to 6,239 thousand tonnes, down 8% y-o-y, as output fell by 167 thousand tonnes at Azovstal Iron and Steel Works (“Azovstal”), 306 thousand tonnes at Ilyich Steel and 35 thousand tonnes at Yenakiieve Steel.

In 2Q 2013, output of semi-finished products rose to 744 tonnes, up 11% q-o-q. This was mainly due to the Group boosting production of merchant pig iron by 67 thousand tonnes and Yenakiieve Steel increasing output of square billets by 27 thousand tonnes. At the same time, output of merchant slabs fell by 21 thousand tonnes, as Azovstal increased its intake to manufacture more flat products.

In 1H 2013, output of merchant semi-finished products increased to 1,415 thousand tonnes, up 8% y-o-y, as the Group’s enterprises boosted output of merchant pig iron by 22 thousand tonnes, while Azovstal produced an additional 57 thousand tonnes of merchant slabs and Ilyich Steel an extra 34 thousand tonnes.

In 2Q 2013, production of finished goods dropped to 2,072 thousand tonnes, down 8% q-o-q:

plate production fell by 123 thousand tonnes at Ilyich Steel, but was partly offset by an increase of 33 thousand tonnes at Azovstal

coil production dropped by 126 thousand tonnes at Ilyich Steel and 36 thousand tonnes at Ferriera Valsider

output of long products climbed by 60 thousand tonnes due to additional orders in Bulgaria and renewed demand for sections in Ukraine

output of rail products increased by 15 thousand tones

In 1H 2013, output of finished goods dropped to 4,324 thousand tonnes, down 8% y-o-y. This was caused by a decline in production of flat goods (327 thousand tonnes) – particularly coils (130 thousand tonnes) and plates (197 thousand tonnes) – and rail products (52 thousand tonnes) as a result of a fall in orders.

In 1H 2013, output of long products remained almost unchanged y-o-y. Output of sections increased by 55 thousand tonnes at Promet Steel due to improved demand in Bulgaria. Production at the Group’s Ukrainian enterprises fell by 48 thousand tonnes following the decommissioning of Yenakiieve Steel's mill 360 in the second half of 2012 and a lack of orders.
In 1H 2013, output of tubular products dropped to 155 thousand tonnes due to the completion of major infrastructure projects in 2012.