Russia's leading mining and metal company Mechel reported on May 31, 2017, that its net profit jumped to $245 mln (13.9 bln roubles) in the 1st quarter 2017.
The company´s crude steel output increased 8 % year-on-year in the 1st quarter to 1.1 million tonnes.
Coal output and sales of coking coal concentrate both fell 10 % compared to the same period last year, to 5.2 million tonnes and 2 million tonnes respectively.
Consolidated Results For The 1Q 2017
|Mln rubles||1Q 17||1Q 16||%||1Q 17||4Q 16||%|
from external customers
attributable to equity shareholders
Mechel´s CEO Oleg Korzhov commented on the 1Q 2017 operational results: «This accounting period can be considered as fairly favorable for the global coal market. After the aggressive price hike in 3Q 2016 and 4Q 2016, the market went back to the price level comfortable for most international mining companies.»
«In 1Q2017 we saw a hike in European demand for coke, which enabled us to increase sales to Germany and Turkey and generally increase sales to 3rd parties by 28%... The 83% increase in forgings sales was due to a stronger demand in the EU and weaker competition from other suppliers of similar products, as well as resumption of forgings supplies to Turkey. The 20 % increase in stampings sales was due to Russian wagon makers increasing their orders for car axles. As Urals Stampings Plant takes measures to build long-term ties with wagon-building companies, we expect a further increase in orders for car axles to come this year», said Korzhov.