Mechel reports catastrophic decline in coal production: down 55% year-on-year
The decline in coal production at Mechel
Mechel reports a significant drop in coal production and other indicators in 2025 due to the crisis in the metallurgy and coal industries. In the third quarter of 2025, Mechel produced 1.28 million tons of coal, which is 16% less compared to the previous quarter. This also means a 55% decline in coal production on a year-on-year basis, as in the third quarter of 2024, the company produced 2.89 million tons.
The production volumes for the first nine months of 2025 total 4.93 million tons, which is 38% less than the same period in 2015, when production reached 17.4 million tons. These figures represent the lowest coal extraction in the last 10 years. Furthermore, pig iron production decreased by 5%, steel by 2%, and thermal energy by 7%. The sales of PCI coal fell by 67%, anthracites by 43%, and stamped products by 41%.
Financial results and challenges
The financial results of the company also indicate a worsening situation. Mechel's net loss in the first half of 2025 amounted to 40.5 billion rubles, which is 2.4 times more than in the previous year. Revenue decreased by 26% to 152.3 billion rubles, while EBITDA fell by 83% to 5.7 billion rubles. The company noted about the 'contraction of sales markets and low price conditions', which is why it 'concentrates efforts on producing products with higher margins.'
“Contraction of sales markets and low price conditions” - Mechel
The situation at Mechel reflects general trends in the metallurgy and coal industries, which are struggling due to falling demand and raw material prices. The decline in production and reduction of financial indicators indicate serious challenges the company faces, which may affect its strategy in the short and medium term. In particular, the focus on producing products with higher margins may be an attempt to adapt to new market conditions and maintain competitiveness.
