In the first quarter of 2024, Mechel focused on maintaining coal production volumes at a level acceptable to the company and finding the most favourable ways to sell its products.
In the first quarter of 2024, Mechel increased its coal production by 22% year-on-year to 2,568 thousand tonnes. However, compared to the last quarter of 2023, coal production decreased by 14%.
The significant decline in the company's steel and pig iron production is attributed to the implementation of a comprehensive repair programme launched at the beginning of 2024. Thus, steel production in January-March 2024 decreased by 148 thousand tonnes year-on-year to 758 thousand tonnes. Pig iron production in January-March 2024 amounted to 701 thousand tonnes, down 16% year-on-year.
Sales of coke concentrate increased by 8% in the first quarter of 2024 due to the utilisation of previously accumulated reserves and higher production at the Neryungrinsky open pit mine. Coking product sales decreased by 21% due to weaker market demand.
Long product sales increased by 2% to 582 thousand tonnes in Q4 2023, while flat product sales increased by 6% to 88 thousand tonnes, thanks to a number of new contracts signed in the domestic market.
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