Mechel reduced steel production by 21% in Q1, 2014

OJSC “Mechel” of I.Zyuzin reduced coal production by 13% to 5.565 million tons in the first quarter of 2014, steel production – by 21% to 1.031 million tons against the same period last year. It is said about in a statement of the company.

Coal production went down by 21% compared to Q4, 2013.

“In Q1, 2014 spot prices on coking coal reached minimum since 2007. The demand from the main consumers has been weak. We have minimized production at Mechel Bluestone in the first quarter because of economical unprofitability. These measures, together with seasonal factors, have resulted in rough coal production by 21% against Q4, 2013.  Meanwhile, coal realization by “Yakutugol” and “Yuzhny Kuzbass” increased 6% against the same period last year at the expense of coal export,” CEO of “Mechel” O.Korzhov said.