IMH reports operational results for 2021

Industrial and Metallurgical Holding (IMH), one of the world's leading suppliers of merchant pig iron and the largest producer of merchant coke in Russia, announces its FY 2021 operational results for the period ended 31 December 2021.

Key operational and sales results summary:

*Coke of 6% humidity

In the second half of 2021, blast furnace #2 and sintering machine #1 at Tulachermet were suspended for long-time maintenance on the back of export duties imposed on ferrous metals in August – December 2021. This resulted in 13% decrease in pig iron production in 2H 2021 to compare with the level of the first six months of the year. The total volume of pig iron production decreased year-on-year only by 7% due to the record high results of 1H 2021 which partly recouped the production losses of the suspension period. Pig iron sales dynamics was corresponding to production: the two quarters with record-high results were followed by reduction which drove a 7% decrease of the full year result. The share of domestic sales increased by 3 p.p. y-o-y to the level of 61%.

Coke production for the whole period of 2021 was 2% up to compare with the previous year result. This was mainly due to the growth of intragroup sales during the first six months of the year. In 2H 2021, internal consumption decreased on the back of lower demand from Tulachermet’s side. At the same time, third party orders at the domestic market increased and recouped the demand losses from Tulachermet. Finally, the result of the second half of 2021 was even better to compare with the first half.

Coal output in 2H 2021 decreased to compare with 1H 2021 because of the two scheduled long wall repositioning exercises at the Tikhova mine. On the contrary, coal concentrate production significantly increased in 4Q 2021 due to the expansion of third-party raw coal processing. The total coal concentrate output in 2021 was lower to compare with the result of the previous year which was driven by the lower production volume during the first 9 months of 2021.

Iron ore concentrate production for the full year 2021 was stable to compare with the level of 2020. At the same time iron ore output slightly reduced because of lower intragroup demand on the back of maintenance works at Tulachermet.

All production sites of the Group operate normally in compliance with the standards and recommendations of relevant ministries and departments regarding the prevention of spread of infectious diseases.