Russia's Metalloinvest kept iron ore and steel sales flat in 2023

MOSCOW. May 30 (Interfax) - Metalloinvest kept sales of iron ore products to external consumers at the 2022 level of 28.3 million tonnes in 2023, the Russian steel and mining holding said in a report.

Sales of pellets increased 3% to 13 million tonnes, while sales of hot briquetted iron and direct reduced iron (HBI/DRI) fell 2% to 3.9 million tonnes, and iron ore 1% to 11 million tonnes.

High value-added products (pellets and HBI/DRI) accounted for 60% of total sales, compared with 72% in 2021.

Sales of steel products last year increased marginally, by 1% to 3.3 million tonnes. The share of HVA products was 33%.

Metalloinvest's iron ore production fell 2% in 2023 to 36.9 million tonnes due mainly to equipment repairs and maintenance.

Pellet production fell 4% to 22.9 million tonnes, while HBI/DRI production increased 1% to 7.5 million tonnes.

Crude steel production increased 1.5% to 3.5 million tonnes.

Metalloinvest's iron ore production fell almost 11%, pellets 20%, and HBI/DRI 3% compared to 2021.

Total sales of iron ore products to external consumers increased 2% compared to 2021 levels. Iron ore sales increased 49%, while pellet sales fell 18% and HBI/DRI 7%.

Crude steel production fell 29%, and steel product sales 28% compared with 2021.

Metalloinvest exported about 50% of its iron ore products and more than 60% of its metallurgical products before anti-Russian sanctions were imposed. Most exports went to Europe, which accounting for 37% of total iron ore sales and 15% of steel segment sales in 2021. Management said in August 2023 that almost 90% of pellets and iron ore concentrate were being sold on the domestic market. Metalloinvest has said it halted supplies to Europe altogether by the end of 2023.

The 2023 report says that the company is currently exporting only semi-finished steel products due to restrictions imposed by Western countries.

Metalloinvest output by product, mln tonnes:

Product 2022 2023 Change Output Iron ore products: Iron ore 37,6 36,9 -2% Pellets 23,8 22,9 -4% HBI/DRI 7,5 7,5 1% Metallurgical products: Steel 3,4 3,5 1,5% Sales Iron ore products: Iron ore 11,1 11,0 -1% Pellets 12,6 13,0 3% HBI/DRI 4,0 3,9 -2% Metallurgical products: Steel products 3,2 3,3 1,4%