Metinvest Group’s Resilient Performance in 2024: Growth Amid Challenges
In 2024, Metinvest Group, a major player in steel production and mining, has shown notable resilience despite facing various market challenges. The company’s report highlighted an increase of 4% in steel production, reaching 2.099 million metric tons, as compared to 2023. This performance underscores Metinvest’s ability to adapt and grow, even as market dynamics shifted throughout the year.
Steel Production and Challenges in the Fourth Quarter
While the company enjoyed overall growth in steel production, the fourth quarter of 2024 saw a 14% quarterly decrease in steel output, down to 489,000 metric tons. This decline was partially due to a shift in demand from finished products to commercial pig iron. Additionally, scheduled maintenance at Kamet-steel's blast furnace No. 9 in October contributed to a 6% quarterly decrease in pig iron production, amounting to 452,000 metric tons.
Over the course of the year, Metinvest’s production of commercial steel products decreased by 3% year-on-year (y/y) to 3.02 million metric tons, with rolled steel output dropping 6% y/y to 2.16 million metric tons. This decline was largely attributed to unfavorable market conditions in Europe, particularly in the flat products segment. However, the company saw growth in the production of galvanized and long products, which partially offset the declines in other steel categories.
Iron Ore Production Surge
A standout in Metinvest’s 2024 report is the remarkable growth in iron ore concentrate production. The company produced 15.73 million metric tons of iron ore concentrate in 2024, reflecting a 42% y/y increase compared to 2023. This boost in production is driven by a strong performance at the company’s mining operations, with commercial product output reaching 14.83 million metric tons, a 58% y/y increase.
Of this, 8.8 million metric tons were iron ore concentrate (+116.3% y/y), while 6.02 million metric tons were pellets (+14% y/y). The increase in concentrate production is a major achievement for Metinvest, further solidifying its position in the iron ore market. In the fourth quarter of 2024, the company also saw a 4% q/q increase in concentrate production, reaching 3.49 million metric tons.
The company attributed its mining and processing performance to efficient electricity usage, market pricing strategies, and its ability to adjust production levels based on capacity and raw material availability.
Coal Concentrate Production Faces Setbacks
Despite strong performance in iron ore, Metinvest experienced a 22% y/y decline in coal concentrate production, which amounted to 4.28 million metric tons for 2024. The situation worsened in the fourth quarter, with production dropping by 7% q/q to 1.06 million metric tons. The Pokrovsk Coal Group, part of Metinvest, produced 2.43 million metric tons of concentrate in 2024, reflecting a 22% y/y decrease. Similarly, the United Coal Company (USA) produced 1.85 million metric tons, also experiencing a 21% y/y drop.
In response to these challenges, Metinvest announced in January 2025 that it would temporarily suspend operations at Pokrovsk Coal Group due to the worsening security situation on the frontlines and ongoing electricity shortages. This suspension highlights the difficulties of operating in a volatile environment, but Metinvest plans to import raw materials to continue supplying its steel production needs.
Coke Production Declines
Coke production, another critical component of Metinvest's operations, also saw a decline in 2024. The company produced 1.12 million metric tons of coke in 2024, a 10% y/y decrease. The fourth quarter of the year also saw a 2% q/q drop in coke output, with 276,000 metric tons produced. The decline was attributed to the shutdown of coke oven battery No. 1 at Kamet-steel, affecting overall production capacity.
Adapting to Market and Operational Shifts
Metinvest’s ability to adapt to challenges in coal and coke production, while simultaneously capitalizing on iron ore growth, reflects the company's agile approach to shifting market conditions and operational hurdles. Despite the setbacks in some areas, the company remains focused on increasing its production capacities and market share, particularly in the iron ore and steel sectors.
Metinvest's strategic decisions and investments in infrastructure, as well as its responsiveness to market fluctuations, have positioned it as a resilient player in the global steel and mining industry, poised to continue navigating the complexities of 2025 and beyond.
