Mechel Trading Ag

Mechel trading ag


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    Mechel's subsidiaries have mined a total of 4. Lenina Underground Mine and major overhauls at our washing plants.

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    At the mechel trading ag time, over 9M our company demonstrated positive dynamics in sales of all our coal products. Most of our anthracite has been sold to Japan and South Korea, which are the premium markets for this product. In addition, we have signed a long-term contract for supplies of thermal coal to Turkey ahead of the heating season.

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    The plant's iron ore concentrate is chiefly intended for our own Chelyabinsk Metallurgical Plant. Moreover, several coke shipments intended for clients in Central and Eastern Europe are still waiting in Ust-Luga port, which will improve the fourth quarter's sales dynamics. At the same time, the decrease in mechel trading ag output mostly affected the least profitable, regular long rolls, while output of the universal rolling mill's most profit-making product, beams, went up in volume.

    Infrastructure construction also registered such growth. All such projects uphold the domestic demand for steel products and ensure good perspectives for our facilities which are oriented more toward domestic markets.

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    I should note that export markets have also revived in the third quarter including Europe and the CIS. Nevertheless, due to the coronavirus the current situation remains uncertain, and new factors may yet appear that will require us to amend our forecasts and appraisals.

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    The mill's product range continues to actively expand with production of 80 new profile sizes mastered, including many profile types never before produced in Russia. Sales of rolled flats demonstrated similar figures.

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    • Subsidiaries of Mechel

    It is important to note that as a result of 9M we managed to gain profit from sales of rolled longs and flats despite tough limitations caused by COVID, that were imposed in the end of 1Q and throughout the second quarter.

    A decrease in heat generation is seasonal in character.