Mechel boosts coal production 15% QoQ in Q3, sales for all types of coal fall

MOSCOW. Nov 14 (Interfax) - Mechel boosted coal production 15% quarter-on-quarter to 2.9 million tonnes in Q3 2024, the mining and steel company said.

Meantime, coking coal concentrate shipments fell 15% to 900,000 tonnes, as the entire accumulated volume of warehouse stocks was sold by the end of the second quarter.

Anthracite sales dropped 17% to 259,000 tonnes owing to the same reason. Dust coal sales fell 61% to 165,000 tonnes owing to a downturn in production at Southen Kuzbass because of a reduction in the number of orders.

Sales of thermal coal fell 29% quarter-on-quarter to 600,000 tonnes owing to a decrease in the share of this type of coal in total production at both Yakutugol and Southen Kuzbass.

"The company continued to redistribute coal sales to the domestic market in the reporting period, replacing export deliveries owing to the introduction of new sanctions restrictions at the beginning of the year," Mechel CEO Oleg Korzhov said in the statement.

Deliveries of iron ore concentrate from Mechel's Korshunovsky GOK increased 16% quarter-on-quarter to 421,000 tonnes.

Pig iron production decreased 4%, and steel production declined 3% owing to major repairs on one of the converters at the Chelyabinsk Metallurgical Plant (ChMK).

Sales of rolled products decreased by 7% quarter-on-quarter to 600,000 tonnes primarily owing to repairs on the equipment of the rolling processing section at ChMK, which produces rebar.

Sales grew 5%, to 47,000 tonnes in the flat rolled products segment.

Overall sales of wire products decreased 6% to 94,000 tonnes owing to limited consumption of wire on the domestic market and the suspension of export deliveries owing to the imposed sanctions.