In 2015, the Company increased output of key products y-o-y:
Both Lebedinsky GOK and Mikhailovsky GOK increased concentrate production. At Lebedinsky GOK, this was due to higher magnetic iron content in the ore and its recovery into concentrate. At Mikhailovsky GOK, the results came on the back of shorter repair times and higher production rates driven by a change in the physical, mechanical and technological properties of the ore mixture. In 2015, concentrate production at Mikhailovsky GOK grew by 0.6% to 16.8 million tonnes.
The launch of Pellet Plant #3 and the scheduled reduction
in repair time significantly increased pellet production at
Mikhailovsky GOK (up 10.3% y-o-y). Pellet production at
Lebedinsky GOK increased by 0.3% due to optimisation
works at the pellet plants.
Annual HBI production at Lebedinsky GOK increased by 8.1% y-o-y (in 2014, the enterprise was undergoing longterm renovation and partial upgrade of HBI-2 Plant).
Pellet production at OEMK reached 3.8 million tonnes (up 2.4% y-o-y) on the back of shorter repair times and the improved performance of the pellet plant.
OEMK saw a record growth in steel production: up 2.6% y-o-y to 3.5 million tonnes due to improved productivity at its electric arc furnaces. Steel production at Ural Steel dropped by 8.1% y-o-y, down to 1.0 million tonnes following changes in the demand structure.
Scheduled renovation of metallisation units led to a minor drop in OEMK’s DRI production by 1.1% y-o-y.
Improved blast furnace processes resulted in higher output
at the blast furnace shop at Ural Steel, thus boosting pig
iron production by 7.6%.
Iron ore product shipments
In 2015, pellets accounted for the majority of iron ore products shipped by Metalloinvest (52.2% of the total volume), with iron ore (concentrate and sintering ore), HBI/DRI and other products making up 39.1%, 8.6% and 0.1%1, respectively.
In 2015, the share of domestic iron ore shipments grew
to 66% (59% in 2014). These changes are attributable
to an increase in shipments to Russian consumers (MMK,
NLMK, Evraz and Severstal). Shipments to European and
Asian customers decreased on a pro-rata basis by 4 p.p.
and 1 p.p., respectively, amounting to 19% and 10%.
Shipments to the Middle East and North Africa (MENA)
remained flat y-o-y.
Shipments of pig iron and steel products
Steel products still account for 70% of steel segment
shipments. In 2015, this figure fell slightly with a
proportional increase in pig iron shipments.
Over the last four years, pig iron shipments have consistently grown, while steel product shipments have decreased. High-margin product shipments remain largely unchanged
In 2015, domestic steel product shipments iIncreased by 12.9%, while shipments to european customers dropped by 17.4%
Domestic shipments accounted for 28% of the total volume of steel product shipments (down 4 p.p. y-o-y). At the same time, shipments to European customers grew to 20% (up 8 p.p.), mainly driven by increased shipments to Italy. In 2015, an increase in shipments to Algeria, Tunisia and Turkey triggered a 3 p.p. y-o-y growth to 29% in the share of shipments to the MENA region.
Starting from 2014, the share of pig iron shipments from Ural Steel as a proportion of the total grew substantially. In 2014, it amounted to 28% and 1.8 million tonnes, remaining unchanged in 2015.
Domestic shipments of steel products have substantially
declined over the last five years. In 2015, they declined by
10%. At the same time, 2015 shipments to the MENA region
grew by 13%.
1 HBI and pellet fines.
2 Including intra-group shipments.
3 Including intra-group shipments.