CRU: Metinvest’s coking coal output continues as Russian forces advance

However, in Q3, Pokrovskoye’s production increased 17% y/y to 658,000 mt thanks to the commissioning of an additional longwall, despite the intensification of military activities in the Pokrovsk area, the company said. It noted the new longwall also enhanced raw coal extraction efficiency and improved coking coal quality.

On the war’s development, Metinvest stated: “Since February 2024, Russian forces have concentrated their efforts on several fronts, including the Pokrovsk direction … Russian troops have gained a tactical advantage, having occupied towns and villages in the region and shifting the front line.

“The intense clashes and heavy shelling in this area are continuing. Management is closely monitoring the situation and is taking every possible measure to minimize any potential negative impacts on the group.”

In the US, output at the company’s United Coal business based in Blountville, Tenn., declined 28% to 1.360 million mt in the nine months due to the idling of the Carter Roag mines and reduced output at some Wellmore mines. However, output rose 9% q/q to 477,000 mt on the back of higher production at some Affinity mines in response to increased demand for low-volatile coking coal.

Metinvest also reported that production of iron ore concentrate went up 63% to 12.24 million mt in the nine months thanks to the freeing of Ukraine’s Black Sea ports from a Russian naval blockade in August last year and a fuller pellet order book.

But in Q3, output was down 17% y/y to 3.347 million mt, initially because Ukraine’s electricity supply was impacted by Russian attacks and heightened demand for imported electricity. Though the power situation stabilized from August, unfavorable market conditions for iron ore led to reduced output.

“To ensure effective production, the group’s mining and processing plants continued to operate at different capacity utilization levels, depending on electricity availability and cost, market prices for iron ore products, and other factors,” Metinvest said.

Crude steel output was 1.610 million mt (up 5%) January-September and 568,000 mt (down 1%) in Q3. Production of semi-finished and finished steel products was 2.304 million mt (down 3%) in the nine months and 742,000 mt (down 9%) in Q3.

This article was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.