№ 1 producer of merchant HBI globally
producer of pellets and iron-ore concentrate in Russia and the CIS
producer of pellets globally
steel producer in Russia. The Company produces 2,000 steel grades
It fully reflects our philosophy – sustainable development is integrated into all business processes and strategic planning of the Company.
Chairman of the Board of Directors
of Management Company Metalloinvest
In 2019, Metalloinvest’s business model proved its resilience, and the Company demonstrated strong financial results despite the external challenges. Net income increased by 5.1% to USD 1.7 billion, and the EBITDA margin remained high, at 36%.
CEO of Management
Company Metalloinvest
The global iron-ore market remains highly consolidated, with four leaders (Vale, BHP Billiton, Rio Tinto, and FMG) accounting for over two thirds of global iron-ore sales. The leading producers of merchant iron ore are Australia, Brazil, China, India, and Russia, which together account for over 81% of global output. As the largest producer and supplier of iron-ore products in Russia and the CIS, Metalloinvest works hard to assess the factors impacting the iron-ore market, and these will be taken into account when the Company’s medium- and long-term development plans are formulated.
Iron-ore production and consumption by region, 2015–2019
million tonnes
According to AME Research, global pellet production fell by 1.9% (-6.78 million tonnes), to 350.9 million tonnes in 2019. The largest pellet producers are those that mainly satisfy the needs of local steelmakers: China, the US, Russia, India, Ukraine, and Mexico. The effects of deteriorating economic conditions hitting European steel producers, which traditionally created long-term and fairly stable demand for pellets, led not only to a decline in the average annual premium for pellets, but also in a drop in the average annual price for pellets compared to 2018. In 2019 Metalloinvest once again achieved a record pellet output of 28.1 million tonnes (+1.5% on 2018) and pellet shipments (+6.1%, reaching 14.9 million tonnes).
Pellet production, 2015–2019
million tonnes
Hot briquetted iron (HBI) and direct reduced iron (DRI) are essential components in producing high-quality steel grades, which in turn contributes to a greener steelmaking process. Currently there is a trend towards building new electrometallurgical plants, which offer greater steelmaking efficiency and require purer raw materials, including HBI/DRI and ferrous scrap. The global HBI/DRI industry is highly concentrated. In 2019 global HBI/ DRI output grew by 5,8 million tonnes y-o-y. The main reason behind this weak growth was the limited availability of raw materials.
HBI/DRI production
million tonnes
According to the WSA, the global output of crude steel grew by 3.3%, to 1,870 million tonnes, in 2019 chiefly owing to China, the US, and Iran. The same year, Chinese steel exports fell 7.3%, to 64.3 million tonnes. Metalloinvest is the leading regional producer of niche rolled steel products. In 2019 the Company fully maintained its share in Russia’s total steel output. The Company holds leading positions in the production of bearing steel, SBQ steel for the automotive and hardware industries, and heavy plate steel for bridge building.
Steel production in 2015–2019
million tonnes
In a fiercely competitive market, the Company is concentrating its efforts on enhancing the quality of its steel products, including SBQ and quality wire rod (QWR) at OEMK and heavy plate steel at Ural Steel. SBQ is a rolled steel product with enhanced physical characteristics, and is used in load-bearing components in the automotive, mechanical engineering, shipbuilding, and aviation industries, as well as in other sectors. Recently there has also been a rise in global demand for highly processed metal products in high-tech industries. Many types of equipment used in aviation or instrumentation engineering, or in the construction of structures that can withstand the extreme environments of the Far North or outer space, require steel with very low levels of gas, nonmetallic inclusions, and other impurities.
SBQ shipped from OEMK, 2015–2019
thousand tonnes
Metalloinvest’s corporate governance system prescribes the proper management and control of the Company’s business and focuses sustainable development and on creating long-term growth in value for shareholders. Corporate governance is based on improving both the efficiency and transparency of the Company
