Performances of Mechel fall quickly

In the first six months, Mechel of Igor Zyuzin, the plan of which salvation is developed by lenders and officials, dramatically deteriorated its industrial performances. The company explains the decreased of the steel production by 17% by deconsolidation of the company Estar, but the fall of the coal production by 16% is a problem of the company itself. The situation on the coal market is now difficult for all players, but it is worse for Mechel than the industry on average. This confirms the view of analysts and some officials of the non-viability of the company, while the scheme of its debts restructuring remains a matter of dispute.

In the first six months of the current year, Igor Zyuzin’s Mechel, the plan of which salvation is now developed by creditor banks together with officials and Vnesheconombank, reduced its coal production by 16%, to 11.2 million tons. The company demonstrated the dramatic fall in the first quarter (by 13%) and couldn’t compensate for it. The semi-annual results of its steel production don’t look any better either - the decline made up 17%, to 2.13 million tons. In the first six months, the company's sales, with the exception of PCI coal, also decreased: for example, coking coal concentrate fell by 7% (to 5.35 million tons), thermal coal by 15% (to 2.53 million tons), bar section by 12% (to 1.6 million tons).