News. Russian ferrous metallurgy news

TMK to increase prices for tubes of its russian division

TMK, one of the world’s leading producers of tubular products for the oil and gas industry, announced a 5% increase in selling prices for the entire range of tubular products offered by its Russian division from 1 March 2017. The price increase will apply to all consumer categories. The key driver behind the announced price increase is a substantial growth of material costs and other operating cost items in the second half of 2016, affecting the Company’s overall production costs.
21 February 2017., 12:00  

S&P revised its outlook on Metalloinvest

Metalloinvest has announced that Standard & Poor’s Ratings Services (S&P) has revised its outlook on Metalloinvest from Negative to Stable. S&P also affirmed the Company’s ‘BB’ long-term corporate credit rating. According to S&P’s latest report, the upgrade to a Stable outlook reflects positive iron ore price trends, as well as actions taken by Metalloinvest’s management team to deleverage and the Company’s high profitability, which remains above the industry average. S&P’s analysts maintained ...
20 February 2017., 16:00  

ChelPipe Group sold over 1.7 million tons of pipes

In 2016, Chelyabinsk Pipe-Rolling and Pervouralsk New Pipe Plants - the pipe division of ChelPipe Group - shipped 1.713 million tons of pipes to consumers, which is 15% less than the volume of 2015 (-306 thousand tons). The volume decline was driven by changes in shipment schedules for Gazprom (The Power of Siberia and North European Gas Pipeline) projects, as well as a decrease in demand on domestic and foreign markets. The largest drop is recorded in the segment of large diameter pipes (-27%). ...
17 February 2017., 12:15  

Metalloinvest announces loan agreement extension

Metalloinves today announces the signing of an additional loan agreement with ING Bank. According to the terms of the agreement, the ING Bank has increased the limit of the Company’s revolving credit line from $100 mln to $150 mln and extended the duration of the loan by two years. The Bank has also improved the terms of the floating interest rate linked to LIBOR. The extension of the credit line provides the Company with an additional source of liquidity in order to maintain its financial stability. ...
13 February 2017., 11:30  

MMK plans annual general meeting of shareholders in May

Magnitogorsk Iron and Steel Works (MMK) has announced that MMK Board of Directors held a meeting today, on 10 February 2017. The Board has approved 26 May 2017 as the date for the Annual General Meeting of Shareholders (AGM) of the Company. The cut-off date for inclusion in the shareholder register for the AGM is 2 May 2017 at the close of trading on the London Stock Exchange. The Board also approved a recommendation by the beneficiary of Mintha Holding Limited (owns 87.26% of OJSC MMK voting ...
02 October 2017., 17:00  

ChelPipe completes second bond issue

Chelyabinsk Pipe plant (ChelPipe) has announces the successful conclusion of book-building for the company’s second issue of exchange-traded bonds (BO series 001P-02) in a total nominal volume of 5 billion rubles, placed under the program. The exchange-traded bonds are structured according to the classical scheme with a 182-day coupon period and bullet repayment at the end of the term. The par value of each bond is 1,000 rubles. The maturity term is 5 years after the placement date. The new ...
02 September 2017., 13:00  

Ural Steel is launching a new product

Ural Steel (part of Metalloinvest) is launching a new product, the slag pot. The first trial version of a slag pot for the Ural Steel pig iron facility was cast in June 2016 at the modular casting unit in the enterprise machine shop. Over seven months of use, the slag pot has withstood over 500 loads and continues to be in use. Andrey Ugarov, First Deputy CEO, Chief Operating Officer of Management Company Metalloinvest, commented: “Testing the product has enabled us to draw a conclusion on its ...
02 August 2017., 06:00  

NLMK USA re-starts galvanize line 2 at Sharon Coating

NLMK USA, NLMK Group’s US-based Division, has re-started its #2 hot-dip galvanizing line in February 2017. The line, which is located at Sharon Coating in Pennsylvania, has a capacity of approximately 226,000 metric tonnes per year. With the re-launch of the second line, Sharon Coating’s effective capacity increased by 43% driven by growing demand in the USA. One hot-dip galvanizing line, with a capacity of 521,000 metric tonnes per year, is currently running at Sharon Coating. Line #2 was idled ...
02 July 2017., 06:00  

Severstal plans new investments

Severstal announced details of its 2017 capital investment program, which highlights its operational excellence and long-term competitiveness. In 2017, Severstal plans to invest approximately 43 billion roubles across the business. This investment will primarily focus on developing key areas of the company’s strategy including cost control, increasing production of high-value added products and enhancing safety and customer care. Severstal Russian Steel Approximately 26 billion roubles will ...
02 June 2017., 06:00  

MMK ships record volume of galvanized steel

Magnitogorsk Iron and Steel Works (MMK) shipped 1,135 million tonnes of galvanized steel to its consumers in 2016, the most in the Company’s history. The previous record of 1,116 million tonnes was achieved in 2014. During the past 15 years, MMK has sustainably grown its galvanized steel output. In 2002 and 2008, the Company commissioned two high-performance continuous hot-dip galvanizing lines at its metal-coating shop. In 2012, MMK commissioned the second stage of a cold-rolling unit at sheet-rolling ...
02 March 2017., 06:00  

Severstal reported 2016 financial results

Severstal has announced its financial results for the 2016. According to its press release, Severstal’s revenue decreased 7.5% year-on-year to $5,916 million (2015: $6,396 million) primarily reflecting a substantial decline in average steel selling prices at the beginning of 2016, as a result of the net decline in global benchmarks and a marginal decline in sales volumes. EBITDA decreased 8.8% year-on-year to $1,911 million (2015: $2,096 million) as a result of lower sales volumes and a decline ...
02 February 2017., 12:00  

MMK celebrates 85th anniversary

Magnitogorsk Iron and Steel Works (MMK) today celebrates the 85th anniversary of the launch of its Magnitogorsk mill. On 1 February 1932 the mill’s first blast-furnace produced its first batch of pig iron. This date has come to be celebrated as marking the launch of MMK – one of the largest metal facilities in Russia and globally. Over 85 years, MMK in total mined more than 430 million tonnes of ore, produced more than 700 million tonnes of sinter, 614 million tonnes of pig iron, 791 million ...
02 January 2017., 10:00  

Metalloinvest expanded iron ore and crude steel production

Metalloinvest has announcesd its operational results for the full year 2016. In 2016, Metalloinvest increased iron ore output by 3.1% y-o-y to 40.7 mn tonnes. In Q4 2016, the Company increased iron ore production1 to 10.3 mn tonnes, 4.0% higher q-o-q. Annual pellet output reached 25.2 mn tonnes, up by 5.9% y-o-y, mainly due to the launch of Pellet Plant #3 at MGOK. In Q4 2016, pellet production decreased by 3.0% q-o-q to 6.3 mn tonnes. In 2016, Metalloinvesty increased HBI/DRI production by ...
30 January 2017., 11:00  

MMK grew of output steel and its products

MMK Group’s total crude steel output in 2016 totalled 12,544 thousand tonnes (up 2.5% y-o-y). Overall steelmaking capacity utilisation at the main Magnitogorsk site (subject to maintenance schedule) amounted to 89% (from 84% in FY 2015). MMK Group’s total finished steel product shipments in 2016 (excluding intra-group sales) amounted to 11,570 thousand tonnes (up 3.4% y-o-y). The decrease in demand for steel in the domestic market was balanced by higher export sales volumes. MMK Group’s HVA ...
26 January 2017., 12:00  

Metalloinvest and OMK sign long-term contract

Metalloinvest and United Metallurgical Company (OMK) have signed a long-term contract for the supply of steel billets for the production of seamless railway wheels. Round cast billets with a diameter of 455mm will be produced at Ural Steel, part of Metalloinvest, and will be delivered to the Vyksa Steel Works, (VMZ, Nizhny Novgorod region, part of OMK). According to the terms of the contract, the pricing will be based on current market indicators, taking into account global price trends. The ...
24 January 2017., 06:00  

MMK’s largest mill sets new record

Magnitogorsk Iron and Steel Works (MMK, or the Company) produced 5,948 thousand tonnes of metal at its hot-rolled products Mill 2000 in 2016 – the all-time record for annual output since the mill was commissioned. This achievement marks the third record-breaking year in a row for the mill – in 2014 Mill 2000 produced 5,930 thousand tonnes while in 2015 the production volume was 5,935 thousand tonnes. MMK’s hot-rolled products Mill 2000 was commissioned in 1994. In 2005-2008, the sheet-rolling ...
23 January 2017., 18:00  

Severstal sales Redaelli Tecna

Severstal has announced that its subsidiary, Severstal – Metiz, Severstal’s international metal ware manufacturer, has entered into a definitive agreement with Teufelberger Wirerope, a leading international metal wire ropes producer based in Austria, for the sale of Severstal’s subsidiary company Redaelli Tecna (Redaelli Tecna, part of Severstal - Metiz). Redaelli Tecna is based in Italy and is a global market leader in the design and manufacture of steel wire ropes for off-shore and on-shore ...
23 January 2017., 11:10  

ChelPipe successfully refinanced syndicated loans

Chelyabinsk Pipe Plant (ChelPipe) has announced early extinguishment of the syndicated loans totaling 80 billion rubles obtained in 2012. The loans were refinanced with funds obtained under credit arrangements signed with VTB Bank, Gazprombank and Sberbank in December 2016. The new loans have been acquired on more favorable terms, which helped the Company cut its interest expenses and optimize the repayment schedule for the main debt. The guarantee of the RF Ministry of Finance granted in 2012 ...
20 January 2017., 11:00  

EVRAZ grew output of coking coal concentrate

EVRAZ has announced its operational results for the full year of 2016. In 2016, consolidated crude steel production and steel product output, net of re-rolled volumes, decreased by 5.7% and 6.1% respectively. This was mainly due to weak tubular and rail markets in North America, lower crude steel production at EVRAZ ZSMK due to planned capital repairs at blast furnaces in 2016, and the deconsolidation of EVRAZ Highveld Steel and Vanadium in April 2015. Changes in the steel product mix reflected ...
19 January 2017., 10:30  

TMK plans to increase shipments in 2017

In 2016, TMK shipped a total of 3,440k tonnes of tubular products, down 11.2% y-o-y. The decline was mainly due to lower welded pipe sales. Seamless pipe shipments remained almost flat y-o-y at 2,399k tonnes. Welded pipe shipments were 1,042k tonnes, down 28.7% y-o-y, mainly due to lower output across all types of welded pipe at the American division and lower consumption of large-diameter pipe (LDP) in Russia. OCTG shipments were down 5.3% to 1,401k tonnes, mostly due to lower demand for welded ...
13 January 2017., 12:00