MINEX Forum

Tag: Steel Production

  • Uzbekistan’s Uzmetkombinat Launches First Casting and Rolling Complex, Boosting Steel Production Capacity

    Uzbekistan’s Uzmetkombinat Launches First Casting and Rolling Complex, Boosting Steel Production Capacity

    Uzbekistan has marked a significant milestone in its industrial development with the commissioning of the country’s first casting and rolling complex at the Uzbek Metallurgical Plant (Uzmetkombinat) in Bekabad. President Shavkat Mirziyoyev personally attended the launch ceremony, underscoring the strategic importance of the project for the nation’s mining and metallurgical sector.

    The new facility is designed to produce hot-rolled sheet metal, a product previously not manufactured domestically, and will enable the plant to produce up to 1 million tons of sheet metal annually, valued at approximately 8 trillion soums. This output is expected to fully meet the sheet metal needs of metallurgical enterprises in Tashkent and Samarkand, while creating around 1,200 new high-paying jobs. The launch is part of broader reforms that have attracted about US$2 billion in foreign investment to Uzbekistan’s mining and metallurgical industry over the past decade. During this period, 31 large production capacities have been commissioned, and the number of enterprises has exceeded 150. Annual metal product output has surged from 800,000 tons in 2016 to 3 million tons today, with value rising from 1.5 trillion soums to 23 trillion soums. The industry now produces around 80 new types of products for mechanical engineering, electrical engineering, defense, and energy sectors, diversifying beyond its traditional focus on construction-grade rolled metal. President Mirziyoyev emphasized that economic growth and infrastructure projects will drive demand for metal products up by about 1.5 times. Future plans include increasing the use of domestic raw materials, with iron ore reserves estimated at 1.5 billion tons. The development of the Tebinbulak deposit is expected to boost steel production to 1 million tons per year within three to four years, while processing ore from the Surun-ota deposit will yield 600,000 tons of iron ore raw materials annually. A new US$180 million metallurgical plant is also planned. Additionally, US$30 million will be invested to double steel ball production capacity from 250,000 to 500,000 tons per year. The creation of the Industrial Park of Ecological Technologies of Uzbekistan on site will host six projects worth US$70 million for producing large-diameter pipes, overhead cranes, and filtration equipment, generating another 660 jobs. The complex is expected to introduce energy-efficient technologies and digital solutions, boosting labor productivity and product quality.

  • Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan Plans Launch of New Metallurgical Plants Under Multi-Year Industry Expansion

    Kazakhstan is set to accelerate development of its metallurgical sector, with seven new metallurgical enterprises scheduled to begin operations in 2026, according to the Ministry of Industry.

    The total investment in the first phase of projects is estimated at KZT 154 billion. By the end of the year, the country expects to commission new production facilities manufacturing ferrosilicon, longitudinal welded and galvanised pipes, as well as reinforcing steel products of various diameters. The projects are expected to create more than 1,100 jobs across several regions.

    A further seven metallurgical plants are planned for launch within the following two years, supported by investments exceeding KZT 2 trillion. These facilities will focus on the production of ferroalloys, profile and strip steel, steel billets, large-diameter pipes and industrial wire products.

    The Ministry projects that expansion in the ferrous metallurgy sector will generate approximately 3,500 additional jobs between 2027 and 2028, including around 1,200 positions in rural areas.

    In parallel, another 16 industrial projects are currently at the design and approval stage. Planned developments include production of high-purity manganese, hot-briquetted and sponge iron, premium-grade steel, grinding balls and other materials required by Kazakhstan’s mining and metallurgical complex.

    Potential investment in these longer-term initiatives could reach KZT 2.8 trillion and is expected to create up to 5,500 additional jobs nationwide.

    Despite strong investment momentum, early-year production indicators in the sector showed mixed performance. Steel output declined by 5.7 percent to 339,500 tonnes, while rolled steel production increased by 11.1 percent to 292,400 tonnes, reflecting shifting demand dynamics within domestic and export markets.

  • Asia United Steel to Launch Rolling Steel Production in Almaty Region by 2027

    Asia United Steel to Launch Rolling Steel Production in Almaty Region by 2027

    Asia United Steel is set to invest 289 billion tenge in launching a rolling steel production facility in the Kazbek Bek industrial zone of the Almaty region, according to the regional administration. The company plans to implement the project in three stages using funding from foreign investors.

    The plant is expected to begin operations in 2027, with an annual output capacity of up to 1.2 million tonnes of steel. Once it reaches full capacity, the new Asia United Steel facility is projected to become a major exporter of rolled steel products to Central Asian markets.

    The production site will meet modern environmental standards. In particular, the plant will be equipped with energy-efficient electric furnaces for steel melting. Using electricity instead of coal is expected to significantly reduce environmental impact.

    Located within a designated industrial zone, the facility will have access to essential engineering infrastructure and railway routes capable of handling up to 100 railcars per day.

    Kazbek Bek is one of six industrial zones currently operating in the Almaty region. The total area of the zone is 900 hectares, and accumulated investment has already reached 559 billion tenge.

  • Kazakhstan Defies Global Steel Production Decline with 6.5% Growth in 2024

    Kazakhstan Defies Global Steel Production Decline with 6.5% Growth in 2024

    Despite a global downturn in steel production and a 20% average drop in steel prices, Kazakhstan has emerged as a standout performer in 2024, achieving an 8th-place ranking worldwide with a 6.5% increase in production. This growth contrasts sharply with the global trend, where steel output fell by 0.8%, according to the World Steel Association. Major producers like China, the United States, Japan, and Russia recorded declines, while countries such as the UK, Argentina, and Pakistan saw even steeper drops.

    The global steel crisis has forced several major plants to halt operations, including Hyundai Steel’s Pohang-2 in South Korea, Acerinox in Spain, and Huachipato in Chile, which closed after 74 years of operation. Similarly, facilities in the US and Portugal have been temporarily idled.

    Kazakhstan’s success is attributed to strategic investments in domestic raw materials and the expansion of production at the Qarmet metallurgical plant. Yerbol Ismailov, Managing Director of Qarmet, highlighted that the company’s growth was anticipated, driven by $3.5 billion in investmentsand a focus on modernization. Qarmet produced over 3.5 million tons of steel in 2024, a 15% increase from the previous year, with plans to reach 5 million tons annually by 2028.

    However, challenges remain. Competing with China and Russia, which offer lower production costs, has been difficult. Qarmet has addressed this by reducing operational costs by 23.5%, lowering the price per ton of slab from 440∗∗to∗∗320, with a target of $280. The company has also implemented anti-corruption measures, digitized operations, and optimized procurement processes to enhance efficiency.

    Despite rumors of financial instability, Qarmet has invested heavily in worker safety, digitalization, and waste management, underscoring its commitment to sustainable growth.

  • Metinvest Announces 2024 Operational Results: Steel and Mining Performance Highlights

    Metinvest Announces 2024 Operational Results: Steel and Mining Performance Highlights

    Metinvest B.V., the parent company of a leading international vertically integrated group of steel and mining companies, has released its operational results for the fourth quarter and the full year ending 31 December 2024.

    In the fourth quarter of 2024, the Group produced 489 thousand tons (kt) of crude steel, reflecting a 14% decrease compared to the previous quarter’s output of 568 kt. Despite this quarterly decline, the annual crude steel production for 2024 reached 2,099 kt, marking a 4% increase from the 2,025 ktproduced in 2023.

    The Group’s iron ore concentrate production showed a positive trend, with 3,493 kt produced in the fourth quarter, a 4% rise from the third quarter’s 3,347 kt. For the full year, iron ore concentrate output surged to 15,733 kt, a significant 42% increase compared to 11,092 kt in 2023.

    However, coking coal concentrate production experienced a decline, with 1,057 kt produced in the fourth quarter, down 7% from the previous quarter’s 1,135 kt. Annually, coking coal concentrate output fell to 4,277 kt, a 22% decrease from 5,455 kt in 2023.

    These results highlight the Group’s resilience in iron ore production despite challenges in steel and coking coal output. Metinvest continues to play a pivotal role in the global steel and mining sectors, adapting to market dynamics and maintaining a strong operational presence.

  • Metinvest Suspends Pokrovsk Coal Operations Amid Security and Supply Challenges

    Metinvest Suspends Pokrovsk Coal Operations Amid Security and Supply Challenges

    Metinvest Mining and Metallurgical Group has officially announced the suspension of operations at its Pokrovsk Coal Group due to the worsening situation on the frontline and ongoing electricity shortages. The company is implementing a contingency plan to secure the necessary raw materials for steel production. This includes sourcing coking coal from the U.S.-based United Coal Company and increasing coal reserves, along with securing additional supplies from third-party vendors.

    Metinvest is also focused on safeguarding its employees, providing evacuation support for Pokrovsk Coal Group workers and their families. Those not directly involved in the shutdown process are being offered retraining and opportunities for employment at other Metinvest assets across Ukraine. Financial assistance, housing support, and enrollment for children in schools and kindergartens are also being provided to the affected families. The company remains committed to resuming operations once the security situation stabilizes and Ukraine’s territorial integrity is restored.

  • EU Long Steel Market Faces Challenges Amid Fluctuating Demand and Global Competition

    EU Long Steel Market Faces Challenges Amid Fluctuating Demand and Global Competition

    The EU long steel market has experienced several phases of development between 2010 and 2023. After the 2008 global financial crisis, production saw modest growth, hindered by weak demand in construction and infrastructuresectors. A key period of recovery from 2015 to 2018 boosted infrastructure projects, leading to a stable production volume of 54-57 million tons in the EU. Countries like Germany, Italy, and Spain increased production, though stricter environmental standards limited further growth.

    Consumption of long steel products closely followed the ups and downs of the construction sector, peaking between 2015 and 2019 due to rising investments in transport infrastructure and residential construction. However, the COVID-19 pandemic in 2020 led to a sharp decline in demand. In 2021-2022, the market rebounded with government support, though by 2023, consumption hit a decade-low of 46.3 million tons due to economic stagnation in the EU.

    In terms of exports, the EU long steel sector thrived in the Middle East and North Africa, but lost ground to Chineseand Turkish competitors offering cheaper products. The EU’s export share, once 18-21% between 2012 and 2016, dropped to 10-12% by 2023. Imports have remained significant, especially from China and Turkey, peaking at 7.9 million tons in 2018 and slightly falling to 5.5 million tons in 2023 due to weak demand.

    Looking forward, the outlook for the EU long steel market remains uncertain. While lower ECB rates and anticipated growth in construction may drive demand, high energy costs and global economic instability pose challenges. Government initiatives to support infrastructure development and stabilize electricity prices are crucial to the market’s future.

  • EU Commission Approves €1.3 Billion State Aid for ArcelorMittal’s Green Steel Initiative

    EU Commission Approves €1.3 Billion State Aid for ArcelorMittal’s Green Steel Initiative

    The European Commission announced on Friday its approval of €1.3 billion ($1.41 billion) in state aid from Germany to support steel producer ArcelorMittal in its efforts to decarbonize a portion of its production processes.

    Stating that the aid was essential to promote the production of environmentally friendly steel, the commission deemed it necessary and fitting. It emphasized that the anticipated positive impacts, particularly in terms of reducing carbon emissions, outweighed any potential negative effects on competition and trade within the EU

  • ArcelorMittal Kryvyi Rih Plans to Increase Capacity Utilization to 50% Despite Challenges

    ArcelorMittal Kryvyi Rih Plans to Increase Capacity Utilization to 50% Despite Challenges

    ArcelorMittal Kryvyi Rih, a leading steelmaking enterprise in Ukraine, aims to ramp up its production capacity utilization to 50% in 2024 despite facing various challenges. Mauro Longobardo, the company’s CEO, revealed plans to boost production by leveraging improved maritime logistics, as stated in an interview with Delo.ua.

    Longobardo highlighted the positive development of maritime logistics, particularly the accessibility of Black Sea ports for the company’s products, including iron ore concentrate, pig iron, and rolled metal. He emphasized the significance of this advancement in facilitating increased production levels.

    The company intends to maximize the capacity of its mining division and initiate operations of two blast furnaces in April 2024, marking a significant milestone toward achieving 50% of its pre-war capacity. Longobardo explained the cautious approach in delaying the launch of the second blast furnace earlier due to the risk of attacks on energy infrastructure, a concern validated by recent incidents in the Kryvyi Rih district.

    Currently operating at 25% of its full capacity, ArcelorMittal Kryvyi Rih faces challenges associated with the expensive sea route for its products. Longobardo revealed that freight rates have doubled, attributing the increase to risk premiums imposed by ship owners and crew members. Despite the high costs, the company remains hopeful for price reductions and increased traffic along the corridor.

    In January 2024, the company witnessed notable growth in steel production, rolled steel, pig iron, iron ore concentrate, and coke, reflecting its resilience amid challenging circumstances. Despite the hurdles encountered in 2023, including the production of 1 million tons of steel, ArcelorMittal Kryvyi Rih remains committed to contributing to the Ukrainian economy and maintaining its production facilities to scale up production when conditions permit.

    ArcelorMittal Kryvyi Rih serves as a vital player in Ukraine’s steel industry, with production facilities capable of producing over 6 million tons of steel, 5 million tons of rolled products, and 5.5 million tons of pig iron annually. With a workforce of over 20 thousand employees, the company continues its operations amidst adversity, striving for growth and stability.

  • Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    In a recent interview with leading Polish business publication Business Insider, CEO Yuriy Ryzhenkov unveiled Metinvest mining and metallurgical group’s plans to invest in a logistics center in Poland. The objective behind this investment is to enhance the supply of Ukrainian metal products for export.

    Ryzhenkov revealed that Zaporizhstal and Kamet Steel, two subsidiaries of Metinvest, are currently operating at 65-70% and 75% of their respective capacities. Approximately 25% of their products are sold within the domestic market, while the majority is exported, primarily to European Union countries. Notably, neighboring nations such as Poland, Slovakia, the Czech Republic, Romania, and Bulgaria are significant destinations for these steel products. The company also caters to customers in countries like Italy, Germany, and France.

    Ryzhenkov acknowledged that steel mills are faring relatively well in terms of sales. However, iron ore enterprises face different challenges. Aside from serving domestic consumption, China was a key buyer. Unfortunately, due to current circumstances, exports to China are nearly impossible as Black Sea ports are blocked. Consequently, EU border countries remain as buyers. Iron ore enterprises are currently operating at 35-40% of their capacity. Efforts were made to send raw materials to China through Romanian and Polish ports, but the logistics economics proved unviable in the current market conditions.

    Ryzhenkov pointed out that the company’s coal production in Ukraine is operating at full capacity. The coal is supplied to Metinvest’s coking enterprises within Ukraine and is also sold in the local market. Exports, mainly to Slovakia and Poland, account for the remaining portion.

    The CEO also mentioned that Metinvest’s 2022 steel production decreased by 69% compared to the previous year, significantly impacting various financial indicators, with profits in 2022 down by 54% compared to the prior year.

    Despite these challenges, Metinvest’s overarching strategy remains unchanged. The company aims to integrate Ukraine and its iron ore resources into the European steel production chain. Consequently, Metinvest continues to seek opportunities to acquire assets that facilitate the utilization of Ukraine’s raw materials to produce goods in the EU and supply them to European consumers.