Moscow, Russia – November 23, 2023 – Mechel PAO (MOEX: MTLR), one of the leading Russian mining and metals companies, reports 3Q2023 and 9M2023 operational results.

Mechel PAO’s Chief Executive Officer Oleg Korzhov commented on the results:

“In Q3, coal mining went up by 17% quarter-on-quarter. Consistent implementation of the technical re-equipment program and our constant effort to improve the operational efficiency of Mechel's coal facilities enabled us to conclude the reporting period with positive production dynamics and significant growth in sales of our key product - coking coal concentrate.

“Coking coal concentrate sales in the third quarter went up by 43% overall and by 139% to third parties. Both export and domestic sales grew, with the latter up by almost 2.5 times.

“The 18% quarter-on-quarter decrease in PCI sales was due to the postponement of a large ship shipment from Q3 to Q4 of the current year, as well as smaller volumes of quarterly PCI deliveries as per customer requests under annual contracts signed earlier.

“Anthracite sales generally remained at the previous quarter’s level. Sales to third-party customers increased by 7% due to the expansion of our sales geography to Asia Pacific. In particular, we shipped a large batch of anthracite to a customer in India.

“The overall sales of thermal coal (-7% by Q2 2023) were affected by a decrease in supplies of this type of product to Mechel Group's enterprises.

“A major drop in production and sales of iron ore concentrate at Korshunov Mining Plant was caused by abnormal watering in Korshunovsky Open Pit. By the end of Q3, we took all the necessary measures at the site and mining operations resumed. Ore mining at Rudnogorsky Open Pit continued as normal in the reporting period.

“A slight decrease in coke sales (-4% quarter-on-quarter) was due to a reduction in exports.

“In this reporting period, we were overhauling blast furnace No. 5 at Chelyabinsk Metallurgical Plant, which led to a 4% and 5% decrease in pig iron and steel output, respectively. We continued to expand sales of our rolled steel products into new markets. As for the domestic market, construction companies’ demand for rebar and other products was stable in Q3, which enabled us to increase domestic sales thanks to our broad customer base. Overall sales of rolled longs and flats quarter-on-quarter (-3% and -10%, respectively) were also affected by scheduled repairs at several of Chelyabinsk Metallurgical Plant’s rolling mills.

“Ferrosilicon sales at Bratsk Ferroalloy Plant went down 20% quarter-on-quarter due to the end of deliveries under a major export contract.

“The slowdown in demand for forgings in the Russian market led to a 28% decrease in sales in the reporting period. Stampings sales went up by 5% quarter-on-quarter, with priority yielded to more expensive types of stampings.

“Hardware sales went up by 2% quarter-on-quarter due to increased wire production and sales at Beloretsk Metallurgical Plant.

“The Q3 decrease in electricity generation by 21% and heat generation by 29% was due to the heating period’s ending as well as repairs at the main generating equipment. 

Production (thousand tonnes): 

Sales (thousand tonnes): 

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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