Press Releases

Mechel Reports 3Q2023 and 9M2023 Operational Results

Moscow, Russia – November 23, 2023 – Mechel PAO (MOEX: MTLR), one of the leading Russian mining and metals companies, reports 3Q2023 and 9M2023 operational results.

Mechel PAO’s Chief Executive Officer Oleg Korzhov commented on the results:

“In Q3, coal mining went up by 17% quarter-on-quarter. Consistent implementation of the technical re-equipment program and our constant effort to improve the operational efficiency of Mechel's coal facilities enabled us to conclude the reporting period with positive production dynamics and significant growth in sales of our key product - coking coal concentrate.

“Coking coal concentrate sales in the third quarter went up by 43% overall and by 139% to third parties. Both export and domestic sales grew, with the latter up by almost 2.5 times.

“The 18% quarter-on-quarter decrease in PCI sales was due to the postponement of a large ship shipment from Q3 to Q4 of the current year, as well as smaller volumes of quarterly PCI deliveries as per customer requests under annual contracts signed earlier.

“Anthracite sales generally remained at the previous quarter’s level. Sales to third-party customers increased by 7% due to the expansion of our sales geography to Asia Pacific. In particular, we shipped a large batch of anthracite to a customer in India.

“The overall sales of thermal coal (-7% by Q2 2023) were affected by a decrease in supplies of this type of product to Mechel Group's enterprises.

“A major drop in production and sales of iron ore concentrate at Korshunov Mining Plant was caused by abnormal watering in Korshunovsky Open Pit. By the end of Q3, we took all the necessary measures at the site and mining operations resumed. Ore mining at Rudnogorsky Open Pit continued as normal in the reporting period.

“A slight decrease in coke sales (-4% quarter-on-quarter) was due to a reduction in exports.

“In this reporting period, we were overhauling blast furnace No. 5 at Chelyabinsk Metallurgical Plant, which led to a 4% and 5% decrease in pig iron and steel output, respectively. We continued to expand sales of our rolled steel products into new markets. As for the domestic market, construction companies’ demand for rebar and other products was stable in Q3, which enabled us to increase domestic sales thanks to our broad customer base. Overall sales of rolled longs and flats quarter-on-quarter (-3% and -10%, respectively) were also affected by scheduled repairs at several of Chelyabinsk Metallurgical Plant’s rolling mills.

“Ferrosilicon sales at Bratsk Ferroalloy Plant went down 20% quarter-on-quarter due to the end of deliveries under a major export contract.

“The slowdown in demand for forgings in the Russian market led to a 28% decrease in sales in the reporting period. Stampings sales went up by 5% quarter-on-quarter, with priority yielded to more expensive types of stampings.

“Hardware sales went up by 2% quarter-on-quarter due to increased wire production and sales at Beloretsk Metallurgical Plant.

“The Q3 decrease in electricity generation by 21% and heat generation by 29% was due to the heating period’s ending as well as repairs at the main generating equipment. 

Production (thousand tonnes): 

Product Name

3Q2023

2Q2023

%

9M2023

9M2022

%

Run-of-mine coal*

2,852

2,429

+17

7,385

8,773

-16

Pig iron

753

781

-4

2,369

2,419

-2

Steel

839

881

-5

2,626

2,681

-2

Electric power generation (thousand kWh)

464,695

589,232

-21

1,721,574

1,663,402

+3

Heat power generation (Gcal)

627,104

887,421

-29

3,450,411

3,541,081

-3


Sales (thousand tonnes): 

Product Name

3Q2023

2Q2023

%

9M2023

9M2022

%

Coking coal concentrate*

1,001

699

+43

2,252

3,130

-28

Including coking coal concentrate supplied to third parties

732

306

+139

1,361

1,959

-31

PCI

315

387

-18

1,125

710

+58

Including PCI supplied to third parties

315

387

-18

1,125

710

+58

Anthracites

300

300

0

817

1,013

-19

Including anthracites supplied to third parties

279

262

+7

736

823

-11

Thermal coals*

508

544

-7

1,752

2,457

-29

Including thermal coals supplied to third parties

342

345

-1

1,238

1,839

-33

Iron ore concentrate

117

349

-67

770

1,337

-42

Including iron ore concentrate supplied to third parties

7

8

-11

20

21

-3

Coke

531

555

-4

1,646

1,678

-2

Including coke supplied to third parties

178

196

-9

551

563

-2

Ferrosilicon

17

21

-20

55

56

-2

Including ferrosilicon supplied to third parties

12

14

-11

39

41

-3

Long rolls

605

626

-3

1,828

1,965

-7

Flat rolls

85

94

-10

290

304

-5

Hardware

119

117

+2

355

382

-7

Forgings

7

10

-28

26

30

-13

Stampings

15

15

+6

46

43

+6


***

Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

***

Mechel is an international mining and steel company. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.