Mechel-Service grows shipments amid sales regionalisation strategy

Mechel’s trading arm, Mechel-Service, posted a 12% on-year increase in deliveries in January-October to 1.41 million tonnes. Sales of beams grew by the most, followed by hardware products.

“The growth in hardware sales was achieved due to the development of a programme for creating sub-sorting warehouses in the regions and selling products from them, which were previously sold directly from Mechel Group enterprises,” says Mechel-Service director for sales Stanislav Karpov. “By the end of the year, we want to further increase our share in the hardware and rope sector, as well continue our work to consolidate our share in the market for beams and shapes. In addition, we plan to install equipment for cutting ropes to size, as well as introduce additional areas for covered hardware warehouses.”

Earlier, Mechel-Service delivered 12,000 tonnes of beams for the construction of the Amur Gas Processing Plant of Gazprom (see Kallanish passim). Among the products supplied were I-beams, which have a high load-bearing capacity with a low specific weight. Its flanges distribute the load and reduce the risk of structural failure.

Mechel-Service posted a 4% on-year increase in shipments in 2020 to 1.52mt despite the impact of the Covid-19 pandemic.

Parent company Mechel saw third-quarter pig iron and steel output remain largely at the previous quarter’s level of 790,000t and 891,000t, respectively. However, nine-month hot metal production decreased 11% to 2.35mt and steel by 1% to 2.61mt.

Consolidated Q3 revenue slipped 5% quarter-on-quarter to RUB 102.9 billion ($1.4 billion). However, year-to-date revenue increased by 47% on-year to almost $4 billion.

Svetoslav Abrossimov Bulgaria