News. Russian ferrous metallurgy news

Metalloinvest builds high-tech facility at Ural Steel

At Ural Steel, part of Metalloinvest, the Roller Treatment Furnace #1 and Heat Treatment Machine #1 Сomplex is undergoing construction. Currently, design and surveying work is ongoing. 1.5 billion roubles have been invested in the project, which is planned to be completed in 2018. The project entails the installation of new high-performance equipment for Roller Treatment Furnace #1 and Heat Treatment Machine #1 in their sheet-rolling facility. The implementation of the project will enable the ...
20 April 2017., 12:00  

ChMK export project wins state support

Mechel reports that the Expert Council of Russia’s Industry and Trade Ministry’s Industrial Development Fund approved a loan for Mechel’s Chelyabinsk Metallurgical Plant (ChMK) to implement a project for production of rails, beams and other structural rolls meant for export. The project’s cost totals 1.52 billion rubles, including 300 million rubles to be loaned by the Industrial Development Fund. The project includes acquiring technological equipment in order to set up manufacturing of products ...
17 April 2017., 14:30  

Severstal remained hot metal output unchanged

Severstal has announced its operational results for Q1 2017. According to its press release, hot metal output remained largely unchanged, decreasing only 1% to 2.34 mln tonnes (Q4 2016: 2.36 mln tonnes) compared with the previous quarter. Crude steel production declined 2% to 2.86 mln tonnes (Q4 2016: 2.92 mln tonnes). Crude steel output at CherMK was impacted by planned maintenance works at converters #2 and #3. Consolidated steel product sales declined 9% q/q to 2.53 mln tonnes compared with ...
14 April 2017., 06:00  

Fitch affirmed Metalloinvest rating with a stable outlook

Metalloinvest has announced that Fitch Ratings (Fitch) confirmed the Company’s long-term issuer default rating at ‘BB’ with a Stable outlook. In accordance with Fitch’s opinion reflected in the published release, Metalloinvest demonstrated financial resilience at times of volatile global pricing in iron ore and steel products and consistently reduced its absolute level of debt over the past four years. Fitch’s analysts also noticed Metalloinvest's top-three pellet and leading merchant hot briquette ...
13 April 2017., 06:00  

Mechel develops cooperation with Baosteel Resources

Mechel reports that its cooperation agreement with Baosteel Resources which is part of China Baowu Steel, China’s largest steelmaking group, has been prolonged. Since April 2017 and until March 2018, Mechel will supply Baosteel Resources’ facilities with up to 960,000 tonnes of premium-grade coking coal mined in Southern Yakutia. Coal will be shipped via Mechel’s own Trade Port Posiet. The price will be determined on a monthly basis. “We have established trust-based, mutually beneficial ties ...
04 December 2017., 15:05  

MMI to invest $98.3 mln in environmental programme

Magnitogorsk Iron and Steel Works (MMK) Group plans to complete 87 environmental initiatives in 2017 with total investments estimated at around 5.6 bln rubles ($98.3 mln) under its environmental programme. Environmental initiatives in 2017 will cover all of MMK Group’s production facilities and subsidiaries. An estimated 5.26 bln rubles will be invested in 69 initiatives at the Magnitogorsk facility, while the remaining 325 mln rubles will be directed to subsidiaries. There are several priority ...
04 November 2017., 12:00  

Zagorsk Pipe Plant’s pipes approved for use at Gazprom

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Denis Safin, Director General of Zagorsk Pipe Plant, took place in Moscow. It was noted that in March 2017 large-diameter pipes produced by Zagorsk Pipe Plant, namely electric-welded longitudinal steel pipes with a diameter of 1,020 to 1,422 mm, had been included in the register of pipe products approved for use at Gazprom’s facilities. The parties discussed the prospects for further cooperation on the ...
04 November 2017., 06:00  

OMK and Gazprom address prospects for further cooperation

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Anatoly Sedykh, Chairman of the Management Board of United Metallurgical Company (OMK), took place in Moscow. It was noted that the long-term cooperation between the companies had strategic importance. Pipe products made by OMK comply with high standards and requirements set by Gazprom. Specifically, OMK supplies pipes for the Company’s key gas transmission projects, including the construction of the Ukhta-Torzhok ...
04 October 2017., 06:00  

TMK ships new tubes to Lukoil

TMK shipped the first batch of сasing with TMK UP Magna premium threaded connections and GreenWell lubricant-free coating to Lukoil. The pipes were successfully sunk at the Y. Kuvykin field in the Caspian Sea with TMK supervisors’ involvement. The shipment was a part of the comprehensive programme to supply the entire casing, made of TMK’s premium casing pipe with GreenWell lubricant-free coating, to the consumer. TMK UP Magna is a premium threaded connection for 340–508 mm casing pipe. TMK ...
04 July 2017., 14:13  

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