Metinvest announces 4Q and 2019 production results

Metinvest BV announced operating results for the fourth quarter and 12 months ended December 31, 2019.

In Q4 2019, Metinvest's hot metal production decreased by 7% qoq to 1,887 thousand tonnes due to scheduled overhauls of blast furnaces at the Mariupol steel mills. Production at Azovstal decreased by 36 thousand tons against the background of the shutdown of blast furnace No. 2, and at Ilyich-Stal decreased by 110 thousand tons due to the shutdown of blast furnace No. 3. In addition, the commissioning of blast furnace No. 3 was postponed to Q1 2020 amid declining demand in the steel market.

In 4Q 2019, total steel production decreased by 16% QoQ to 1,673 thousand tonnes, as the Group produced less hot metal and allocated more to commercial pig iron production. The latter arose against the background of a higher demand for this product and a decrease in demand for slabs and finished products.

In 2019, the production of hot metal at the Mariupol steel mills decreased by 3% YoY to 7,928 thousand tonnes, mainly due to a 232 thousand tonnes reduction in Azovstal production amid the shutdown of blast furnaces No. 5 and 6 in June. This was partially offset by the launch of high-efficiency blast furnace # 3 after a major upgrade. In 2019, the Group's steel production increased by 3% YoY to 7,578 thousand tonnes, mainly due to an increase in production at Ilyich-Steel by 321 thousand tonnes following the commissioning of a new continuous casting machine No. 4. Steel production at Azovstal decreased by 66 thousand tons due to a decrease in the yield of hot metal.