Mechel Slashes Coal Output Amid Global Market Slowdown

In Q1 2025, Russian mining and steel company Mechel reported a 27% quarter-on-quarter and 17% year-on-year drop in coal production, totaling 2.1 million tonnes. CEO Oleg Korzhov attributed the decline to weakened global demand for coking coal, which led to significant price pressures in Russia's domestic market. In response, Mechel adjusted its production plans and implemented cost-reduction strategies across its coal mining operations. Despite the overall production decrease, sales of coking coal concentrate increased by 14% quarter-on-quarter to 1.1 million tonnes. Additionally, sales of pulverized coal (PCI) rose by 75%, anthracite by 16%, and thermal coal by 41%, aided by existing stockpiles and seasonal demand from the Kangalassky strip mine in Yakutia. Conversely, iron ore concentrate sales fell 38% due to lower production at the Korshunov mine, attributed to reduced iron content in the processed ore. Pig iron and crude steel outputs saw modest increases of 5% and 2%, respectively.