Metalloinvest announces operational results for Q1 2018

Metalloinvest, a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, today announces its operational results for the first quarter of 2018.

Management comments

Andrey Varichev, CEO of Management Company Metalloinvest, commented:

"In the first quarter of 2018, Metalloinvest continued the successful implementation of its strategy to increase volumes of value-added products, raising production of pellets, HBI, hot metal and steel. Our customers benefited from a quarter-on-quarter increase in our high-quality product output, with HBI shipments increasing by 10% and high value-added steel up by 14%."

Iron ore products

• In Q1 2018, Metalloinvest produced 9.9 mn tonnes of iron ore , a decrease of 2.0% q-o-q, mainly due to the calendar factor
• In Q1 2018, the Company increased pellet production by 2.7% q-o-q to 6.7 mn tonnes, mainly as a result of the completion of maintenance works in Q4 2017 and a change in the product mix
• In Q1 2018, Metalloinvest's HBI/DRI output reached 2.0 mn tonnes. The q-o-q increase of 4.0% was mostly due to increased productivity resulting from the launch of HBI-3 Plant at LGOK in July 2017
• In Q1 2018, the share of high value-added iron ore product shipments (pellets, HBI/DRI) amounted to 69%, compared with 65% in Q4 2017

Steel products

• In Q1 2018, Metalloinvest increased hot metal output by 5.9% q-o-q to 0.7 mn tonnes, mainly due to the completion of maintenance works in Q4 2017 and growth in internal consumption of hot metal, to secure increased steel production
• In Q1 2018, the Company increased crude steel production to 1.2 mn tonnes. The 6.0% q-o-q increase was largely a result of increased activity at Ural Steel's Continuous Casting Machine #1 to satisfy growing demand for cast billets
• The share of high value-added (HVA ) steel product shipments increased to 46% in Q1 2018 from 42% in Q4 2017. This increase was driven by growing shipments across the Company's entire HVA steel product range