The Kryvyi Rih Iron and Steel Works of PJSC "ArcelorMittal Kryvyi Rih" (AMKR, Dnipropetrovsk region) is currently operating at 30% capacity for metallurgical production and 70-75% for mining, reported the plant's General Director Mauro Longobardo in an interview with the "Interfax-Ukraine" agency.
"For pig iron, steel, and finished products, we are utilizing about 30% of our capacities. However, there were times when it was different: from April to August, we operated with two furnaces due to a more favorable economic situation. But the winter situation is quite challenging, mainly due to electricity," said the company leader.
He explained that, firstly, there are difficulties with electricity supply due to attacks on energy infrastructure, and secondly, inflated tariffs complicate the situation. As a result, the production cost exceeds the market price of finished products. For these two reasons, starting in November and likely until the end of winter and into the first quarter of 2025, the plant will operate with only one blast furnace.
"In metallurgy, due to the security situation, we managed to return to 50% of our production in the middle of the year. Meanwhile, in mining production, we consistently utilize about 70–75% of our pre-war capacities, producing 650–700 thousand tons of concentrate per month with 65% iron content. Before the war, about 80% of iron ore concentrate was directed to our steel production, while about 20% was exported to our sister company in Poland. Currently, due to the reduced amount of concentrate used for steel production, we are sending larger volumes for export. When we produce more, we try to supply to China depending on the market price. This is about one ship per month," noted the top manager.
The General Director pointed out that electricity supply for mining production is important but not as critical as for metallurgical equipment, which is very sensitive to supply fluctuations: it is challenging to stop and restart the equipment. Therefore, the company needs to be very cautious and should not frequently turn equipment on and off.
In absolute performance indicators for the year, with a capacity utilization of 50%, the company is expected to produce approximately 1.6-1.65 million tons of metal products, of which 1.15 million tons will be finished rolled products. They will also produce 2.16 million tons of pig iron. The difference of 500-600 thousand tons between steel and pig iron volumes is explained by the fact that the plant sells pig iron in ingots, primarily supplying it to the USA.
Longobardo reminded that while previously AMKR could produce 6 million tons of pig iron and steel, now it can produce up to 3 million tons if two blast furnaces operate for all 12 months. However, at the beginning of the year, in the first quarter, only one blast furnace operated, and in the last months of the year, only one is working as well. That means about 4-4.5 months this year, only one furnace operated, which led to a decrease in production, the CEO stated.
"In the first quarter of next year, one furnace will operate, and in subsequent quarters – two. Our business plan for 2025 is 2.5-2.6 million tons, not 3 million tons, because, I repeat, in the first quarter, we will only have one furnace operating. But after that, we hope to work with two furnaces at maximum capacity. For mining production, we plan to produce 650-700 thousand tons of concentrate per month throughout the year. This is if the concentrate price in the market remains at the current level – approximately $110-120/ton. This year, the price has occasionally fallen temporarily, during which we produced 500 thousand tons," the General Director noted.
"ArcelorMittal Kryvyi Rih" is the largest producer of steel products in Ukraine, specializing in the production of long products, particularly rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical complex in Ukraine, "ArcelorMittal Kryvyi Rih," along with several smaller companies, including PJSC "ArcelorMittal Berislav."