Mechel Reports Operational Results for Q1 of 2020
Leading Russian mining and metals company Mechel announced operational results for Q1 of 2020. Mechel PAO’s Chief Executive Officer Oleg Korzhov said “Today we can safely say that the spread of COVID-19 in 1Q2020 had no significant impact on our production and sales. In the mining division that was largely due to our proactive work on extending annual contracts with our Asian customers throughout 2019. We also shifted supply schedules for long-term contracts and redistributed sales geography for certain products where needed. We shipped off volumes planned for 1Q2020 through our sales network. We expect that sales performance targets for the second quarter will also be met. For several accounting periods, prices have maintained fairly high volatility. At the same time, in May we have noted a trend for stronger global prices for our key product, coking coal concentrate, which we consider a positive market factor. Despite the pandemic, the steel division’s sales remained stable in 1Q2020. We foresee a negative impact on sales in 2Q2020. April-May is the traditional time for a spike in demand from construction and steel sales companies, but with ubiquitous restrictive measures in place, we have seen no expected sales increase in early second quarter.”
Production
|
Product Name
|
Q1'20
|
Q1'19
|
YoY
|
Q4'19
|
QoQ
|
|
Run-of-Mine Coal
|
5,188
|
3,520
|
47
|
5,420
|
-4
|
|
Pig Iron
|
872
|
870
|
0
|
796
|
10
|
|
Steel
|
876
|
930
|
-6
|
860
|
2
|
|
Electric power generation (thousand kWh)
|
884,354
|
897,722
|
-1
|
899,197
|
-2
|
|
Heat power generation (Gcal)
|
1,836,563
|
2,020,629
|
-9
|
1,719,460
|
7
|
|
|
In ‘000 tonnes
Sales
|
Product Name
|
Q1'20
|
Q1'19
|
YoY
|
Q4'19
|
QoQ
|
|
Coking coal concentrate
|
1684
|
1697
|
-1
|
1830
|
-8
|
|
Including coking coal concentrate supplied to third parties
|
1048
|
1023
|
2
|
994
|
5
|
|
PCI
|
445
|
261
|
71
|
482
|
-8
|
|
Including PCI supplied to third parties
|
445
|
261
|
71
|
482
|
-8
|
|
Anthracites
|
268
|
158
|
69
|
235
|
14
|
|
Including anthracites supplied to third parties
|
212
|
130
|
63
|
177
|
20
|
|
Thermal coal
|
1212
|
1333
|
-9
|
1174
|
3
|
|
Including thermal coal supplied to third parties
|
947
|
1187
|
-20
|
950
|
0
|
|
Iron ore concentrate
|
572
|
612
|
-7
|
636
|
-10
|
|
Including iron ore concentrate supplied to third parties
|
7
|
149
|
-95
|
12
|
-43
|
|
Coke
|
623
|
652
|
-4
|
615
|
1
|
|
Including coke supplied to third parties
|
198
|
231
|
-14
|
248
|
-20
|
|
Ferrosilicon
|
13
|
17
|
-25
|
15
|
-19
|
|
Long rolls
|
648
|
606
|
7
|
618
|
5
|
|
Flat rolls
|
124
|
115
|
7
|
112
|
11
|
|
Hardware
|
133
|
142
|
-6
|
126
|
6
|
|
Forgings
|
12
|
12
|
6
|
8
|
51
|
|
Stampings
|
23
|
29
|
-22
|
23
|
-2
|
|
|
In ‘000 tonnes
Universal rolling mill
|
Product Name
|
Q1'20
|
Q1'19
|
YoY
|
Q4'19
|
QoQ
|
|
Sales of rails
|
116
|
31
|
276
|
87
|
34
|
|
Sales of sections
|
76
|
73
|
3
|
74
|
3
|
|
|
In ‘000 tonnes
