'The investment program aimed at upgrading the mining equipment led to increased mining volumes both quarter-on-quarter and and in 1H2022 compared to 1H2021.
'Anthracite sales in 2Q2022 went up by 36% due to stockpiles accumulated earlier at
'Thanks to our investment program, Korshunov Mining Plant increased output and sales -iron ore sales went up by 18% in 1H2022 year-on-year and by 36% in 2Q2022 quarter-on-quarter. Nearly all of that iron ore goes to
'In this reporting period, domestic coke sales went down due to a slump in demand from Russian steelmakers, as did exports as sales to Western countries were limited.
'The steel division demonstrated stable operations in this reporting period, as steel and pig-iron output went up by 7% and 6% accordingly. Customer fears of possible supply interruptions in 1Q2022 fueled demand for long rolls. Starting in 2Q2022, due to export limitations and domestic oversupply, demand trends turned downward. Negative price trends for almost every kind of steel product persist to this day. We increased sales of long steel by 6%. Sales of flat steel went down by 10%.
'The overall decrease in hardware sales was 1% in 1H2022 year-on-year and 16% in 2Q2022 quarter-on-quarter, due to a slump in domestic demand for wire. At the same time, in 2Q2022 we managed to expand our client base for Beloretsk Metallurgical Plant's wire ropes, and sales of this high-margin type of hardware surged up 9% quarter-on-quarter.
'In 1H2022, forgings sales went up by 8%, primarily due to increased output of stainless products as well as the effect of comparing against low-key results of the same period last year. In the second quarter, domestic forgings sales remained at the previous quarter's level, and the 44-percent decrease of the overall forgings sales was due to limitations introduced by
'In 1Q2022, wagonbuilders actively replenished their stock of railway axles, which reflected on the 1H2022 stampings sales. However, in the second quarter the trend has reversed and sales dropped 32% quarter-on-quarter.
'Bratsk Ferroalloys Plant's ferrosilicon sales went down 5% due to changes in the logistical supply chains.
'The 26-percent decrease in electricity generation in 1H2022 was due to planned repairs and maintenance at the company's heat and electricity generators. The four-percent decrease in heat generation was due to higher temperatures during the heating period of 2022.'
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the
Contact:
Ekaterina Videman
Tel: + 7 495 221 88 88
Email: ekaterina.videman@mechel.com
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