MMK targets output increase in 2010 and 2011

Friday, 16 July 2010 16:44:06 (GMT+2)

According to reports, Russian steel producer Magnitogorsk Iron and Steel Works (MMK) aims to produce 10 million mt of steel products in 2010, operating at about 80 percent of its capacity utilization level, while in 2011 it plans  to increase this volume to 12 million mt, and thus to operate at full capacity.

According to MMK chief financial officer Oleg Fedonin, in H1 2010 MMK produced more than five million mt of steel products, which represents an increase of 32 percent year on year. Of the company's overall sales, 65 percent were delivered to the Russian domestic market, while 35 percent were exported, mainly to the Middle East (43 percent of total exports) and Europe (27 percent).

Despite the current situation in the steel market, MMK does not intend to cut its output yet, Mr. Fedonin said, adding that currently the plant produces about 900,000 mt of products per year and plans to keeps its output at the same level in July and August. According to him, MMK's monthly sales in the domestic market amount to about 500,000-520,000 mt, about 62,000 mt per month are delivered to CIS countries, and the rest is exported.

Meanwhile, noting the last two-month fall in demand and prices for steel products, MMK's chairman Victor Rashnikov expressed his expectations that from September demand and prices will start to recover.

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