Mechel’s Rail Sales in 2020 up by 8% YoY
Russia’s leading mining and steel maker Mechel Group sold 300,000 tonnes of rails in 2020, which is 8% more than in 2019. Russian Railways were the chief recipient of Mechel’s rails, accounting for 234,000 tonnes. The remainder, approximately 70,000 tonnes, went to other Russian and foreign-based consumers. Mechel Group’s steel division includes two facilities producing various types of rails at Chelyabinsk Metallurgical Plant for railway and switch point rails and Izhstal for subway conductor rails.
Last year, Chelyabinsk Metallurgical Plant’s rail shipments went up 8% year-on-year. The plant’s exports went up by 74% year-on-year. Its sales geography expanded, with Chelyabinsk Metallurgical Plant’s rails shipped to Georgia and Latin America for the first time.
Apart from Russian Railways, key consumers of Mechel’s rails include Mosinzhproekt and Moscow Metro, which use Mechel’s rail products both for maintenance and for construction of new underground lines. Over the previous accounting period, Mechel’s facilities supplied over 87,000 tonnes of rails for construction of new metro lines and repairs to the existing metro railways in the Russian capital, with supplies including Chelyabinsk Metallurgical Plant’s R65 and R50 rails and Izhstal’s conductor rails.
Izhstal’s supplies of conductor rails in 2020 went up by 27% year-on-year. In 2020, Izhstal went through voluntary certification of its conductor rails, which gives the product competitive advantage and enables the plant to expand its customer portfolio and supply the rails to CIS member states.