Ukraine-based steel and mining company Metinvest’s crude steel output declined by 10pc to 1.7mn mt in Q2 FY2020 (April-June) from 1.9mn mt in Q2 FY2019, according to a company release.
The production fell by 17pc from the prior quarter driven by lower hot metal production and repair and maintenance of Ilyich Steel’s basic oxygen furnace no.2, followed by idling it amid weak demand for steel products. The output, however, rose by 1pc in H1 to 3.96mn mt from 3.92mn mt in the prior year period backed by increase of of 38,000mt in production of hot metal at Ilyich Steel amid a reallocation of hot metal to steelmaking after the launch of new equipment.
Crude steel output at Azovstal and Ilyich facilities dropped by 13pc and 5pc to 936,000 mt and 856,000mt, , respectively, compared to the prior year period.
|Metal Production (000’mt)||Q2 2020||Q2 2019||% change||H1 2020||H1 2019||% change|
Company’s hot metal production fell by 4pc to 1.97mn mt in Q2 from 2.05mn mt in prior year period and 5pc from the preceding quarter.
Of the total production, Azovstal accounted for 832,000mt, down by 8pc and 17pc from the prior year quarter and prior quarter, respectively, due to drop in production by 167,000mt due to idling of blast furnace no.4 for maintenance. The blast furnace was relaunched later in May amid gradual recovery in demand.
Ilyich Steel contributed 1.14mn mt, marginally down from the prior year quarter, while up by 5pc from the previous quarter on the back of launch of blast furnace no.3 in Q1 FY2020. In H1, the output increased by 1pc to 4.06mn mt compared to last year.
In Q2, Metinvest’s semi-finished products’ output rose by 8pc to 880,000mt from 815,000 in the prior year quarter and increased by 31pc from 637,000 in the preceding quarter this year. The output, however, dropped by 12pc to 1.51mn mt in H1 2020..
|Metal Product output (000’mt)||Q2 2020||Q2 2019||% Change||Q-o-Q Change|
The company’s finished products’ output declined by 16pc to 1.29mn mt in Q2 from 1.53mn mt in Q2 of 2019. Flat products’ output fell by 14pc from the prior year quarter due to weak demand for hot-rolled plate and the shutdown of the Italian re-rollers in March-April amid COVID-19 pandemic. The output fell by 17pc on quarterly basis. In H1, the output dropped by 6pc to 2.86mn mt from 3.03mn mt in the prior year period.
The company’s long products, Railway products and Tubular products’ output declined in Q2 of 2020 by 23pc, 40pc and 35pc to 155,000mt, 6,000mt and 28,000mt, respectively, from Q2 of 2019 amid sluggish demand.
In Q2, company’s iron ore concentrate output registered an increase of 4pc amounting to 7.56mn mt, but remained unchanged from the prior quarter’s output. The output rose on the back of steady ore production and operational improvements. The pellets output declined by 46pc to 1.01mn mt from the prior year period.