Largest implemented projects

A balanced commercial policy, long-term and mutually beneficial relations with our key partners, possibility to quickly respond to changes in conditions in the foreign markets, and focus on products with high added value allow the Company to effectively meet the challenges of today, including the declining prices in the global markets and instability of macroeconomic situation”.
Nazim Efendiev,
First Deputy CEO — Commercial Director

Metalloinvest’s steel was used in the construction of Bugrinsky Bridge in Novosibirsk. Bugrinsky Bridge has the biggest arch span in Russia, it is 380 metres long and 80 metres high. It is supported by approximately 9 kilometres of steel cables. The total length of the bridge is over 2 kilometres. The first vehicles crossed the bridge in October 2014.

Metalloinvest took part in the implementation of a large transportation project in Siberia — a bridge over the River Vakh between the Tomsk Region and Yugra. The bridge connected Strezhevoy and Nizhevartovsk to become part of one of the main sections of a motorway in Western Siberia. The bridge is 1 kilometre long, the total weight of its spans is 7,000 tonnes. The throughput capacity of the bridge is 8,000 vehicles per day. The bridge was put into operation in November of 2014.

In September 2014, the Otkrytie Arena, the home stadium of Spartak Moscow football club, was commissioned. The stadium capacity is 45,000. The stadium is included in the list of host facilities for the 2018 World Cup. Rolled steel items for the new stadium were supplied by Ural Steel.

As estimated by the Company, in 2014, Metalloinvest’s market share in key steel segments was:

  • 55–60% in bridge construction;
  • 35–40% in ship building;
  • 55–60% in construction steel;
  • 35–40% in reservoir plants and chemical engineering plants segment.

In 2015, the Company plans to:

  • increase the sales of bridge steel, and grow its market share to 65%;
  • increase its market share in the ship building segment to 45–50% by growing sales at Ural Steel;
  • increase its market share in the segments of rolled steel products for construction and reservoir plants to 65–70%.

Geography of Shipments

The Company aims at geographical diversification of its shipments to the end consumers. Metalloinvest ships its iron ore products within Russia, to the CIS, Europe, China, Southeast Asia, and countries in the Middle East and North Africa.

Export supplies of crude iron ore and HBI to Europe and the CIS go through the border terminals and sea ports on the Baltic Sea and the Black Sea. Supplies to Europe travel through the CIS countries. Most supplies to China are made on DAP basis and go via a rail terminal in Zabaikalsk.

Russia & CIS
Europe
North America & South America
Middle East
& Africa
Asia

Russia and CIS

60%Share in the total shipment iron ore, Pellets and HBI/DRI

Main consumers

  • NLMK
  • MMK
  • Koks Group
  • Evraz
  • Severstal
  • Kosaya Gora Iron Works

39%Share in the total shipment of steel products

Main consumers

  • Kamaz
  • AVTOVAZ
  • Minsk Traktor Plant
  • MAZ
  • Gomselmash

Europe

23%Share in the total shipment iron ore, Pellets and HBI/DRI

Main consumers

  • US Steel kosice
  • Arselor M ittal
  • Tata S teel

12%Share in the total shipment of steel products

Main consumers

  • Duferdofin
  • VW
  • Hay Speed
  • PSA
  • Schaeffler
  • INA
  • OM-NIA
  • Krasnik
  • Eurings
  • SFK

North America & South America

2%Share in the total shipment iron ore, Pellets and HBI/DRI

19%Share in the total shipment of steel products

Main consumers

  • NTN Brazil
  • Niagara Lasalle

Middle East & Africa

4%Share in the total shipment iron ore, Pellets and HBI/DRI

Main consumers

  • Erdemir
  • Icdas
  • Izmir

27%Share in the total shipment of steel products

Main consumers

  • Demirjian
  • Diler
  • Habas
  • Kroman Celik
  • Demirsan

Asia

11%Share in the total shipment iron ore, Pellets and HBI/DRI

Main consumers

  • Kobe Steel
  • Suifenhe
  • Xilin

3%Share in the total shipment of steel products

Main consumers

  • Huffaz Seamless
  • NTN Thai-land

Diversification of iron ore product shipments

Iron ore Product Shipments in 2013–2014, %

Russia is a priority sales market for Metalloinvest. In 2014, Russia's share of iron ore product supplies remained unchanged from 2013 and stood at 16.2 million tonnes (59%). The large consumers in the domestic market include Novolipetsk Steel (NLMK), Magnitogorsk Iron & Steel Works, Severstal, Evraz, KOKS Group, Kosaya Gora Iron Works and others.

In 2014, the share of supplies to Europe increased to 23% (6.3 million tonnes) from 20% in 2013, primarily due to a considerable increase in shipments to U.S. Steel Kosice. Other large consumers in the regions are ArcelorMittal, Tata Steel, Arvedi and Ferriere Norde.

In 2014, the share of shipments of iron ore products to Asia slightly decreased from 2013 levels (from 8% to 5% for China, and from 9% to 6% for other Asian countries). It happened due to an increase in supplies to the European markets, which generated a higher margin for the Company (due to the shorter transport leg). Shipments to China amounted to 1.5 million tonnes, and shipments to other Asian countries, 1.6 million tonnes in 2014. Among the larger Asian consumers are Kobe Steel (Japan), and the Chinese enterprises of Xilin Group and others.

In 2014, the share of the Middle East and North Africa in the structure of shipments grew from 3% to 4% (0.7 and 1.1 million tonnes respectively) as a result of increasing the volumes shipped to Erdemir (Turkey), the largest consumer in the region.

Iron ore products and metal resources are shipped to Russian steelmaking plants via direct sales. Price calculation in most contracts is based on the iron ore price index Platts (62% Fe, CFR China).

The share of exports in the structure of shipments of pig iron and steel products in 2014 was 88% and 60% respectively. The key sales markets of the Company's Steel Segment are Western Europe, Turkey, Egypt, Saudi Arabia, CIS countries, North America.

Metallised Product Shipments in 2013–2014, %

Development of long-term partnership with the customers allows the Company to maintain a high level of competitiveness.

In 2014, the Company concluded the following long-term contracts:

April

Metalloinvest and KOKS Group signed a one-year iron ore concentrate supply contract. According to the contract, the total amount of iron ore concentrate supplies will exceed 1 million tonnes.

June

Metalloinvest signed a three-year pellet supply contract with Kosaya Gora Iron Works. According to the arrangements achieved by the companies, the total amount of supplies will make 1.9 million tonnes.

August

Metalloinvest and Ferriere Nord S.P.A., an Italian steelmaking plant (a company of Pittini Group), concluded a long-term hotbriquetted iron (HBI) supply contract.

December

Metalloinvest and Novolipetsk Steel (NLMK) extended the existing long-term pellets supply contract till December 31, 2015. According to the arrangements achieved by the companies, the total amount of supply will make 6.6 million tonnes of pellets. Earlier in 2011, Metalloinvest and NLMK signed a four-year pellet supply contract for the supply of about 21.6 million tonnes.

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