MMK: Russian steel product demand to increase by 10 percent in 2011

Friday, 29 October 2010 13:19:14 (GMT+2)   -  

Tags: Russia , CIS , MMK , consumption , investments , steelmaking | similar articles » SteelOrbis News

The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) considers that a second wave of financial crisis will not happen, and in the near future it does not expect decreases in demand and prices in the steel market, MMK's chairman Victor Rashnikov said in an interview given to Russian newspaper Kommersant, adding that the market is almost stable, with fluctuations seen only for specific types of products.

"In the current year, the consumption of steel products in the country is up by 25 percent over 2009. In 2011, we forecast a 10 percent growth in steel product demand. The pre-crisis prices will be reached in 2012-2013, not earlier," Mr. Rashnikov said. 

In the next few years, MMK plans to complete the implementation of its major projects, i.e., the commissioning of two new mills, including the mill 2000, the completion of its MMK-Atakas project, the construction of the fourth converter at its main production site in Magnitogorsk. The total investments in 2010 will amount to $2 billion, while in the 2011-2014 period its investments are expected to be in the range of $1.2-1.5 billion per year.