Marketing of iron ore products under COVID-19 pandemic conditions

Abstract

Marketing of iron ore products under the COVID-19 pandemic conditions became a robustness test for the metallurgy sector and the whole global economy. Most of the countries imposed various restrictions on the frontier crossing and business activities, the industrial scheduling and freight flows were essentially revised, and the supply and demand for goods and raw materials was accordingly restructured. The raised social expenditures in many countries resulted in higher issues of banknotes by central banks. The commodity markets experienced alternating price behavior of basic materials. Staring from the second half of 2020, the deferred demand for metal grew gradually, which entailed the additional requirement of the raw material and the rising prices quotes. In 2021, including recovery of metallurgy industry, the iron ore prices on the world markets continued rising. In the conditions of periodically shut-off paths of supplies (mostly because of the pandemic) and under varying demand for mineral raw materials, Lebedinsky GOK maintained its production capacity utilization and remained present on all critical markets. To this effect, Lebedinsky GOK improved the range of products, flexibly changed sales and logistics depending on the market situation, closely cooperated with all production units within the Metalloinvest Group and preserved the yield of iron ore and hot briquetted iron (HBI). Within a short term, Lebedinsky GOK successfully tuned up production of premium quality pellets, which was internationally appreciated, as well as increased production of re-enriched concentrate and its shipment to Mikhailovsky GOK for manufacturing higher quality pellets in the framework of economic cooperation at the Metalloinvest Group of Companies. In the period of the pandemic, Lebedinsky GOK successfully maintained stable iron ore production and shipment at the effective healthcare and health protection.