In 2016, the Company significantly boosted the output of all its core products, with the output of iron ore, pellets, HBI / DRI and pig iron reaching a record high. Shipment volumes also grew, driven by HBI / DRI, pig iron and steel deliveries.
The 3.1% increase in iron ore output was mainly due to the scheduled reduction in repair time and increased productivity resulting from higher iron recovery into concentrate at Lebedinsky GOK.
The increase in pellet output was due to Pellet Plant #3 at Mikhailovsky GOK, commissioned in September 2015, reaching full operational capacity.
HBI / DRI
The 2.3% increase in HBI output
at Lebedinsky GOK was due to the HBI–1
Plant increasing production following
major maintenance works in autumn 2015.
The increase in DRI output resulted from higher productivity at OEMK’s metallisation units.
The increase in pig iron output was due to the launch of the more productive Blast Furnace #4 (and the decommissioning of Blast Furnace #2) and Casting Machine #5 in late 2015.
OEMK increased its steel output by 2.9%, largely due to increased productivity at its electric arc furnaces following the upgrade of the enterprise’s gas purification equipment. Ural Steel ramped up its steel output by 5.7% to 1.1 million tonnes, mainly due to the increased utilisation of CCM #1 in response to the rising demand for merchant cast billets.
Iron ore product shipments, million tonnes
Pig iron and steel product shipments, million tonnes
In 2016, domestic shipments dropped from 66% to 61% due to increased exports to the Netherlands, Italy, and Slovakia.
In 2016, the Company redistributed
its export sales, which resulted
in a decreased share of domestic
shipments to 24%.
The share of exports to North America, Middle East and North Africa grew, while the share of shipments to Europe declined.