Metinvest Releases 4Q and Full-Year 2024 Operational Results Amidst Continued Strain from Ukraine Conflict
Metinvest B.V., a leading international vertically integrated steel and mining group, today unveiled its operational results for the fourth quarter and 12 months ended 31 December 2024. The company has faced significant challenges throughout the year, primarily due to the ongoing war in Ukraine, which has severely disrupted its manufacturing operations.
Impact of the Ukraine Conflict on Operations
Since Russia launched a full-scale military invasion of Ukraine on 24 February 2022, Metinvest’s plants located in Ukraine have been severely affected. The group’s production capacity has been constrained by multiple factors, including security threats, difficulties in personnel management, electricity supply issues, logistical disruptions, and economic uncertainty. Despite these obstacles, Metinvest has continued to operate, albeit with reduced capacity and efficiency.
Metallurgical Segment Performance
In the metallurgical segment, which is a cornerstone of Metinvest’s operations, the fourth quarter of 2024 saw a notable decline in production figures.
Hot Metal and Crude Steel Production
During the fourth quarter of 2024, Kamet Steel's hot metal production decreased by 6% quarter-on-quarter (q-o-q), amounting to 452,000 metric tons (kt). The decline was largely attributed to a temporary maintenance shutdown of blast furnace No. 9 in October. Similarly, crude steel output saw a more significant drop of 14% q-o-q, reaching 489,000 metric tons. This decline was primarily driven by a strategic shift from producing finished steel products to focusing on merchant pig iron, which temporarily affected steel production.
However, the overall performance for 2024 showed some positive results. The full year’s hot metal production reached 1,818,000 metric tons, marking a 3% year-on-year (y-o-y) increase. This improvement was due to the efficient operation of two blast furnaces at Kamet Steel. Additionally, crude steel production for 2024 rose by 4% y-o-y, amounting to 2,099,000 metric tons.
Merchant Pig Iron and Steel Production
In 2024, Metinvest continued to see a shift in its product mix, with a greater focus on merchant pig iron and steel production. The company’s strategy of diversifying its output allowed it to adapt to changing market conditions and the disruptions caused by the ongoing war. However, this shift also reflects the challenges faced in fulfilling orders for finished products, which has been a result of supply chain disruptions and the limited availability of materials in Ukraine.
The company noted that the data related to the production of merchant long products in 2023 had been revised. This revision was due to changes in intragroup consumption at Kamet Steel, which affected the reported output figures.
Looking Ahead: Continued Challenges in 2025
Looking ahead, Metinvest remains focused on adapting to the ongoing challenges posed by the conflict in Ukraine. The company is exploring new strategies to optimize its production capabilities, including leveraging the operation of multiple blast furnaces and expanding its focus on merchant pig iron. However, the economic and logistical hurdles caused by the war are expected to continue affecting operations for the foreseeable future.
Despite these obstacles, Metinvest’s strong performance in 2024, particularly the positive growth in hot metal and crude steel production compared to the previous year, demonstrates the resilience of the company in navigating an extremely difficult operating environment. Moving into 2025, Metinvest will continue to monitor and adjust its strategies in response to the ongoing geopolitical and economic challenges, ensuring that it remains agile in a volatile market.
While the effects of the war in Ukraine have been deeply impactful, Metinvest's efforts to maintain production and explore new avenues of growth underscore its commitment to securing its position as a leading player in the global steel and mining industry.
