Mechel’s CEO Oleg Korzhov commented on operational results. “For us, 2019 became a year of major equipment reconstruction projects in our steel segment and restoring the equipment pool in our mining division. We have seen results of this effort at Southern Kuzbass Coal Company as early as the end of last year — starting in October, the company reached a monthly output level of 1 million tonnes and demonstrated a confident growth of all key results, with mining volumes up by 25%. Korshunov Mining Plant improved its annual output by 30%. In the steel segment, we completed a large-scale reconstruction of one of our 3 blast furnaces and one of 3 converters. This will increase these facilities’ output by 15% and thus our overall steel output in 2020."
As for Mechel’s sales, in 2019 the company decreased sales to China by a quarter, redistributing them in favor of Japan’s market which is more profitable. In 2020, the coal market is still volatile, and considering the coronavirus situation, may remain so for several months yet.
Coke sales to 3rd parties went up by 36% as stockpiles freed due to repairs at Chelyabinsk Metallurgical Plant’s blast furnace #4 were sold to export, including Turkey and India.
