Mechel PAO's coal output fell by 10% to 5.1 million tonnes in the first quarter, from 5.7 million tonnes in the same period in 2016, the company reported May 31.
Pig iron production grew by 4% to 1.05 million tonnes, from 1.00 million tonnes, and steel production increased by 8% to 1.1 million tonnes, from 1.0 million tonnes.
"The steel division's operations in this accounting period were stable with pig iron and steel production maintained at the level of the previous quarter," said CEO Oleg Korzhov in a press release.
For sales, coking coal concentrate fell by 10% to 2.0 million tonnes, impacted by a temporary change in mining structure at the Neryungrinsky open pit, where the share of steam coal was increased and coking coal was reduced. Sales of coke grew by 2% year over year to 722,000 tonnes, driven by a hike in European demand, which led to an increase in sales to Germany and Turkey, said Korzhov.
This accounting period was "fairly favorable" for the global coal market, following the aggressive price hike in the third and fourth quarters in 2016, he said.
Although PCI coal sales fell by 34% year over year to 341,000 tonnes, from 521,000 tonnes, it represented a quarter-over-quarter increase of 13%.
"PCI sales went up by 13% due to fulfillment of our contractual obligations to customers in Japan and South Korea, where we shipped a total of 300,000 tonnes of product," said Korzhov.