Features

CRU: Metinvest’s coking coal output continues as Russian forces advance
Written by CRU
November 22, 2024
Metallurgical coal production at Metinvest’s Pokrovske Coal operations in eastern Ukraine has declined. But that’s more due to everyday mining challenges than the threat of the Russian army getting closer to the mines, according to Metinvest, the steelmaker and miner based in the city of Zaporizhzhia in southeast Ukraine.
In the first nine months of 2024, output fell 23% year-on-year to 1.860 million metric tons (mt), mainly because of the optimization of mining operations amid changing geological conditions, the company said.
However, in Q3, Pokrovskoye’s production increased 17% y/y to 658,000 mt thanks to the commissioning of an additional longwall, despite the intensification of military activities in the Pokrovsk area, the company said. It noted the new longwall also enhanced raw coal extraction efficiency and improved coking coal quality.
On the war’s development, Metinvest stated: “Since February 2024, Russian forces have concentrated their efforts on several fronts, including the Pokrovsk direction … Russian troops have gained a tactical advantage, having occupied towns and villages in the region and shifting the front line.
“The intense clashes and heavy shelling in this area are continuing. Management is closely monitoring the situation and is taking every possible measure to minimize any potential negative impacts on the group.”
In the US, output at the company’s United Coal business based in Blountville, Tenn., declined 28% to 1.360 million mt in the nine months due to the idling of the Carter Roag mines and reduced output at some Wellmore mines. However, output rose 9% q/q to 477,000 mt on the back of higher production at some Affinity mines in response to increased demand for low-volatile coking coal.
Metinvest also reported that production of iron ore concentrate went up 63% to 12.24 million mt in the nine months thanks to the freeing of Ukraine’s Black Sea ports from a Russian naval blockade in August last year and a fuller pellet order book.
But in Q3, output was down 17% y/y to 3.347 million mt, initially because Ukraine’s electricity supply was impacted by Russian attacks and heightened demand for imported electricity. Though the power situation stabilized from August, unfavorable market conditions for iron ore led to reduced output.
“To ensure effective production, the group’s mining and processing plants continued to operate at different capacity utilization levels, depending on electricity availability and cost, market prices for iron ore products, and other factors,” Metinvest said.
Crude steel output was 1.610 million mt (up 5%) January-September and 568,000 mt (down 1%) in Q3. Production of semi-finished and finished steel products was 2.304 million mt (down 3%) in the nine months and 742,000 mt (down 9%) in Q3.
This article was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.

Latest in Features

Final Thoughts
President Trump’s tariff policies have a lot more in common with a roundabout than you’d think.

Timna Tanners joins Wells Fargo as managing director, equity research
Mining metals analyst Timna Tanners has joined Wells Fargo as managing director of equity research, according to a post on her LinkedIn profile.

SMU’s Week in Review: July 4-11
A roundup of steel industry news that happened this week, as reported by Steel Market Update.

Price: Reciprocal tariff changes and potential new tariffs for Brazil, Canada, others
Trade issues do not seem poised to leave the headlines anytime soon. And as recent developments show, the administration’s tariff policy remains ever-changing.

SMU Scrap Survey: Sentiment Indices rise
Both current and future scrap sentiment jumped this month, though survey participants reported responses before key trade news was announced.