Mechel cuts coal production 27% QoQ in Q1 2025 owing to cooling demand

MOSCOW. May 27 (Interfax) - Mechel cut coal output 27% quarter-on-quarter and 17% year-on-year to 2.1 million tonnes in Q1 2025, the company said.

"The global coal market saw a cooling in demand for coking coal in the reporting period, with the trend exerting substantial pressure on prices on Russia's domestic market that approached multi-year lows. We optimized production plans and developed a set of measures to reduce costs at our coalmining assets in response to the changes in the market. Consequently, the overall coal production figure decreased 27% quarter-on-quarter in Q1 2025," CEO Oleg Korzhov was quoted as saying in a press release.

Sales of coking coal concentrate rose 14% QoQ to 1.1 million tonnes.

Pulverized coal or PCI sales rose 75%, anthracite 16% and thermal coal 41% thanks to stockpiles. Thermal coal sales benefited also benefited from seasonal growth in sales from the Kangalassky strip mime in Yakutia.

Iron ore concentrate sales fell 38% QoQ to 0.3 million tonnes due to lower production at the Korshunov mine, caused by a lower Fe content in processed ore.

Pig iron and crude steel output rose 5% and 2%, respectively.