News. Russian ferrous metallurgy news

MMK Board of Directors Recommends Dividends For Q4 2018

PJSC Magnitogorsk Iron & Steel Works ("MMK" or "the Company”, ticker: MMK:LI) announces that on 8 February 2019 the Company’s Board of Directors recommended that the Annual General Meeting of shareholders approve a dividend of RUB 1.398 (before taxes) per share for the fourth quarter of 2018 on MMK’s issued ordinary registered shares. The dividend will represent the total of approximately USD 239 mln at the current exchange rate, which equals to 100% of the Company’s FCF for Q4 2018. As a result, ...
15 February 2019., 14:22   comment

Severstal’s Izhora Pipe Mill to supply Gazprom with over 200 thousand tons of pipes

Izhora Pipe Mill (IPM, part of PAO Severstal) has won several tenders to supply PAO Gazprom with over 200 thousand tons of large diameter pipes. The products will be used in the development of gas transmission capacities for the Unified Gas Supply System in the North-West Region (NEGP), as well as the construction of the Kovykta-Chayanda section of the Power of Siberia gas pipeline. The Company will produce and supply pipes with diameters of 720 to 1420 mm with varying wall thickness using K60 ...
15 February 2019., 14:20   comment

Moody’s upgrades NLMK Group’s long-term credit rating

International rating agency Moody’s has upgraded NLMK Group’s long-term credit rating from Baa3 to Вaа2 with a stable outlook (both are investment grade). The decision follows a rating action to upgrade Russia’s sovereign rating which took place on 8 February 2019. Shamil Kurmashov, NLMK Group CFO, said: “We welcome Moody’s decision to upgrade NLMK’s rating. This decision acknowledges the Company’s high creditworthiness and the sustainability of NLMK’s business model.” NLMK’s current credit ...
15 February 2019., 14:18   comment

MMK Group Financial Statements

Q4 2018 highlights vs Q3 2018 The decrease in revenue for Q4 2018 was due to the fall in the average sale price of finished products against a backdrop of a seasonal decrease in sales of steel products. In Q4 2018, the cost of sales grew q-o-q, mainly due to higher prices of key raw materials on the domestic market. As a result, EBITDA decreased by 20.0% on the previous quarter. EBITDA margin amounted to 27.4%. Quarterly profit amounted to USD 245 mln. One-off factors that had an impact on profit ...
02 August 2019., 16:15   comment

Q4 and 12m 2018 NLMK Group consolidated financial results under IFRS

NLMK Group (MICEX and LSE: NLMK) is pleased to announce an EBITDA growth of 35% yoy to $3.6 bn in 2018. EBITDA margin hit a decade high at 30%. Free cash flow grew by 60% to $2.0 bn. 12M 2018 key highlights Group revenue in 12M 2018 totalled $12.0 bn (+20% yoy), driven by the growth of average sales prices and higher sales volumes. EBITDA grew to $3.6 bn (+35% yoy), driven by higher revenue and operational efficiency gains in 2018. Free cash flow increased by 60% yoy to $2.0 bn, due to the increase ...
02 August 2019., 16:13   comment

Tenaris and Severstal to form joint venture to build a welded pipe plant in West Siberia

Moscow, February 5, 2019 –Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN) and PAO Severstal (MICEX-RTS: CHMF; LSE: SVST) announced today that they will create a joint venture to build a welded pipe plant to produce OCTG products in the Surgut area, West Siberia, Russian Federation. Severstal will have a 51% interest in the joint venture company, with Tenaris owning the remaining 49%. The commencement of the project is subject to regulatory approvals and other customary conditions. ...
02 May 2019., 13:51   comment

Fletcher Group consolidates service functions into Corporate Solutions Centre

NLMK Group, an international steel company, has sold 100% of its stake in NLMK Accounting Centre to Fletcher Group Holdings Limited for a total of 23.9 million rubles. NLMK Accounting Centre will be used as a platform for setting up a single service company, NLMK Corporate Solutions Centre, that will provide services to NLMK Group companies and Universal Cargo Logistics Holding (UCL Holding), an international transport group, including Freight One (PGK). This transaction will ensure a balance ...
02 May 2019., 11:43   comment

Severstal announces 2019 capital investment programme

PAO Severstal ("Severstal"; "the Company"), one of the world’s leading vertically integrated steel and steel-related mining companies, today announces its capital investment programme for 2019. In line with previous announcements, Severstal plans to invest approximately 95.7 billion rubles in 2019, focusing on the key areas of the Company’s updated strategy disclosed during its Capital Markets Day in November 2018 – superior client experience, cost leadership and embracing new opportunities ...
02 May 2019., 11:41   comment

IMH operational results for FY 2018

Industrial Metallurgical Holding (IMH), one of the global leading suppliers of merchant pig iron and the biggest merchant coke producer in Russia, announces its operational results for FY 2018. In 2018, Tulachermet achieved record-high pig iron production for the whole history working with two blast furnaces. Total production increased by 3% to 2,343 kt compared to 2,276 kt in 2017. This was the result of higher production efficiency upon completion of maintenance at blast furnaces № 2 and 3 ...
02 May 2019., 11:39   comment

MMK's hot-rolled products Mill 2000 sets annual production record

PJSC Magnitogorsk Iron and Steel Works’ (MMK) hot-rolled products Mill 2000 achieved its maximum annual production rate in 2018, for the second time since its launch, breaking the 6 million tonne mark for production of hot-rolled products. The previous record was set at the end of 2016, when the annual output of the mill reached 5.948 million tonnes of hot-rolled steel. In 2018, the figure was 6.002 million tonnes. MMK's most productive rolling mill is located in sheet-rolling shop No. 10. This ...
02 May 2019., 11:37   comment

Izhora Pipe Mill to supply pipes for the European gas pipeline Poland–Slovakia Gas Interconnection

Izhora Pipe Mill (IPM, part of PAO Severstal) is to produce and supply over 11 thousand tons of large diameter pipes for the Poland–Slovakia Gas Interconnection project, which will become part of the EU energy infrastructure priority corridor North–South gas interconnections in Central Eastern and South Eastern Europe (NSI East Gas). IPM will supply the customer, Eustream, with pipes with a diameter of 1016mm and length of 18m, made of grade L485ME steel. Metal plates for the products will be ...
25 January 2019., 14:57   comment

Mechel Launches Steel Trade Online Store

Mechel reports launching an online store to market the company’s rolls. Mechel Service OOO’s online store offers a wide range of rolls, including over 40,000 articles in 49 categories such as flat and section rolls, pipes, hot- and cold-rolled products, hardware, stainless rolls and others. The store’s website is www.mechelservice.ru/catalog The website also shows updated information on all of Mechel Service sales network’s subsidiaries located in 41 Russian cities and towns. Any Russian-based ...
25 January 2019., 14:54   comment

TMK Announces FY 2018 Operational Results

FY 2018 Highlights Total pipe shipments grew 6% year-on-year, to 4,010 thousand tonnes, mainly driven by higher seamless OCTG shipments at the Russian division and increased shipments of both seamless and welded OCTG pipe at the American division, due to stronger drilling activity in North America. Seamless pipe shipments were up 3% year-on-year, to 2,767 thousand tonnes, mainly reflecting increased shipments of OCTG pipe at the Russian division. Welded pipe shipments were up 11% year-on-year, ...
25 January 2019., 14:52   comment

MMK Group Trading Update for Q4 and FY 2018

Q4 2018 highlights vs. Q3 2018 MMK Group’s total sales of finished products in Q4 2018 totalled 2,936 thousand tonnes, down 3.8% quarter-on-quarter (q-o-q). MMK Group’s sales of HVA products in Q4 2018 were 1,349 thousand tonnes, almost flat q-o-q. The share of HVA products in total sales increased to 45.9%. MMK Coal’s coal concentrate production in Q4 2018 totalled 781 thousand tonnes, down 3.4% q-o-q. FY 2018 highlights vs. FY 2017 MMK Group’s total sales of finished products in FY 2018 totalled ...
25 January 2019., 14:49   comment

Severstal reports Q4 & FY2018 operational results

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrat¬¬ed steel and steel-related mining companies, today announces its operational results for Q4 and FY2018. Q4 2018 GROUP HIGHLIGHTS • Hot metal output decreased 3% q/q in Q4 2018 to 2.23 mln tonnes (Q3 2018: 2.31 mln tonnes), due to BF#2 short-term maintenance works. Crude steel production declined by 4% to 2.94 mln tonnes (Q3 2018: 3.06 mln tonnes) reflecting a decrease in pig iron production and seasonal ...
18 January 2019., 14:30   comment

Q4 2017 and 12M 2018 NLMK Group Trading update

In 2018, NLMK Group sales grew to 17.6 m t, up 7% yoy. Steel output grew by 2% yoy to 17.5 m t. Steel capacity utilization rate was 99%. 12M 2018 highlights: Steel output increased by 2% yoy to 17.5 m t. Group sales grew by 7% yoy to 17.6 m t, driven by growth of demand in key sales markets. Sales growth was supported by a +20% yoy growth of semi-finished product sales to 6.8 m t. Finished product sales remained flat yoy at 10.8 m t. HVA sales increased by 3% yoy to 5 m t. Sales in home markets ...
18 January 2019., 14:29   comment

MMK reaches new record resilience for steelmaking unit lining

Magnitogorsk Iron and Steel Works (MMK) has achieved a new record indicator for the resilience of the refractory lining of the main arch of the two-hearth furnace (THF) at the electric steel smelting shop. Refractories, which face the internal surface of a furnace, withstood 1,321 melts. The previous highest indicator (1,265 melts) was set just three months ago. An increase in the numbers of melts per lining supports higher output, reduces operational costs and increases production efficiency ...
26 December 2018., 12:37   comment

Category Metalloinvest upgrades blast furnaces at Ural Steel

Metalloinvest has commenced the technical re-equipping of blast furnaces #2 and #3 at Ural Steel. In order to be able to function with maximum efficiency for an extended period of time, the blast furnaces will be equipped with a cooling and lining system using high-heat copper cooling plates combined with graphite refractories. The modernisation also involves the installation of a new automated control system for first- and second-tier technological processes, including the automation of natural ...
26 December 2018., 12:35   comment

NLMK to award scholarships to best MISIS students

NLMK Group, an international steel company, will establish personalized scholarships for the best students of MISIS National University of Science and Technology, and grow the number of on-the-job trainees from the University at its sites. NLMK and MISIS have signed a framework cooperation agreement which will facilitate the training of qualified steelmaking professionals and contribute to the development of the vocational training system. The agreement opens up new opportunities for science ...
26 December 2018., 12:33   comment

Mechel Expands Long-Term Coal Supply Agreement with Japan’s Itochu Corporation

Mechel PAO reports expansion of the sales agreement with a major Japanese universal trading company Itochu Corporation. The agreement stipulates that Mechel and Itochu Corporation agreed on potential sales of up to 800,000 tonnes of coking and thermal coal between December 2018 and March 2020. The coal will be shipped from Mechel’s Southern Kuzbass Coal Company and Elgaugol. The price will be determined by mutual agreement. Japan’s major consumers and Asian steelmaking and power facilities will ...
18 December 2018., 11:57   comment