Experts estimate financial costs of fire at MMK

Market experts have estimated that approximately $100 million will be needed to remedy the damage caused to production by the fire on Tuesday at Russian mill Magnitogorsk Iron and Steel Works (MMK). Two cold rolling mills, with a total production capacity of 3.5 million metric tons of cold rolled sheets, have been damaged as a result of the fire, which broke out in flat rolled workshop №5 of MMK on November 28. Although the plant's representatives have stated that MMK have enough semi-finished products to continue its work according to the normal regime, the experts estimate that MMK will be forced to spend at least $5-7 million a month to purchase the necessary material for production from outside sources. In addition, since the damaged workshop ships goods later used in the production of HDG and tinplate, market players are predicting a considerable decrease in the shipments of these products in addition to the CR decrease. According to the latest information, six people were killed, another is still missing, while many were injured as a result of the fire.