Chelyabinsk Mechel has suspended production of unprofitable coal products

Mechel has suspended the production of unprofitable types of coal products and partially redirected resources to more in-demand areas. This was announced on August 28 on the company's website.

"In the context of cost inflation, a strong exchange rate of the national currency and sanctions restrictions, the economy of the coal business has come under serious pressure. Under the current conditions, we have decided to suspend the production of unprofitable types of products, partially reorienting resources to products that are more in demand in today's realities," the message said.

The company added that the situation in the metallurgical segment remains difficult, although more stable. They noted that the high key rate of the Central Bank of Russia and limited access to foreign markets lead to a slowdown in business activity among consumers of steel products, which limits demand and prices. At the same time, as stated in Mechel, production volumes can be maintained at stable levels, but the profitability of enterprises has significantly decreased.

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