Metalloinvest increased steel product shipments by 6.6% on-year in the fourth quarter of 2016 to 1.13 million tonnes, while pig iron sales soared 25.6% to 564,000t. This was thanks to a 34% rise in sales of these products in Russia to 552,000t, while sales to Europe and the Middle East and North Africa (MENA) dropped.

Sales in Russia rose in Q4 mainly as a result of pig iron demand growth following an increase in scrap price, the Russian steelmaker says in a report seen by Kallanish. Shipments to MENA fell as they were redirected to meet increased domestic demand.

The Russian steelmaker’s iron ore and hot briquetted/direct reduced iron shipments rose 3.8% and 13.8% respectively on-year in Q4 to 2.78mt and 658,000t. However, iron ore pellet sales dropped -2.7% to 3.86mt. Shipments of these products to Europe surged 86.2% to 1.96mt, but Russian and Asian deliveries slumped.

In full-year 2016 Metalloinvest achieved annual records for production of iron ore, pellet, HBI/DRI and hot metal. Iron ore output rose 3.1% on-year to 40.7mt, while pellet output grew 5.9% to 25.2mt and HBI/DRI production increased 4.8% to 5.7mt. Hot metal output rose 20.2% to 3mt due to the launch of blast furnace no.4 and pig iron casting machine no.5 in late 2015. Crude steel output rose 3.6% to 4.7mt.

Steel shipments in 2016 grew 3.1% on-year to 4.33mt, while pig iron deliveries rose 28.5% to 2.36mt. MENA bought 9.8% more at 1.91mt and Asia 6.9% more at 186,000t. Sales to Russia declined due to reallocation of product to exports, while to Europe they declined because of increased shipments to the US, United Arab Emirates and Morocco.

Shipments of iron ore fell -0.4% in 2016 to 10.74mt, but sales of HBI/DRI and pellet rose by 5.4% and 0.7% respectively to 2.51mt and 14.54mt. Europe and MENA bought 33.5% and 16.8% more respectively at 6.95mt and 1.18mt, but deliveries to Russia and Asia slumped. European demand was driven by the Netherlands, Slovakia and Italy.