Russian steelmaker MMK Group has issued a disclaimer regarding the influence of the spread of the Covid-19 virus on its business activities, stating there has not been any critical effect on its activities just yet. However, in terms of global trade and steel prices, an impact is expected, the company said.
MMK Group does not exclude a negative effect from the Covid-19 virus on global business activity and business activity within Russia. According to the company’s expectations, over the next two-to-three months, prices for steel products in the domestic market will strive towards export parity, normalizing the premium of the domestic market. However, as of now, there has been no critical impact on the group’s sales, the company said. MMK Group is carrying out equipment repairs alongside a planned decrease in production volumes.
There are no difficulties with procurement either, the company said, with all basic raw materials, equipment and spare parts being supplied on time.
MMK Group continues to implement its investment program in accordance with its development strategy and estimates that the impact of the adverse epidemiological situation on the investment projects implemented in 2020 will be minimal.