Metalloinvest rose production in 1H 2016

But Metalloinvest rose iron ore production by 4.6% to 20.4 mln tonnes, pellets – by 4.9% to 12.3 meln tonnes, HDB/DRI – by 5.9% to 2.9 mln tonnes.

Also Metalloinvest expanded pig iron output by 25.3% to 1.5 mln tonnes, steel – by 3.5% to 2.3 mln tonnes.

Tatyana Belyakova, Director of Economics, commented: “The Company substantially increased output in almost all product categories during the reporting period. The key production highlights included a 5% increase in pellet production, primarily as a result of Pellet Plant #3 commissioning at Mikhailovsky GOK in September 2015 and reaching its design capacity in the second quarter of 2016, as well as a 3% growth in crude steel production driven by an increase in demand for flat products. However, average global iron ore and steel prices in H1 2016 were lower than in the previous year, which resulted in a decrease in the Company’s revenue and EBITDA. We expect that measures to improve the level of iron ore processing into higher value-added products, supported by a gradual market recovery might have a positive impact on the Company’s performance in future.”