The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced that in January-September this year it increased its crude steel production by 22.6 percent year on year to 8.654 million mt and raised its steel product output by 21.6 percent year on year to 8.183 million mt.
Despite the 9.7 percent year on year decrease in its longs production in the first nine months, in Q3 MMK noted a 65 percent quarter on quarter increase in its longs output, due to the recovery in domestic market demand buttressed by shortage of supply, as minimal July supply volumes and increased activity in the rebar market in August caused traders to resume restocking. Meanwhile, in Q3 MMK saw a decrease in its CRC shipment volume because of reduced motor car production in August, with Russian automakers being key consumers of this product type.
In January-September 2010, MMK increased its steel product shipments to the domestic market by 42.8 percent year on year to 5.112 million mt, while its export shipments decreased by 8.1 percent year on year to 2.625 million mt. In Q3, the share of MMK's shipments to the domestic market of its total shipments rose by four percentage points quarter on quarter to 69 percent.
In Q3 2010, MMK's average steel product price dropped from $647/mt to $632/mt, mainly due to weaker prices in the export markets, with its domestic market average price remaining unchanged (around $700/mt) and its average export price decreasing to $478/mt from $537/mt in Q2.
In Q4 2010, MMK expects its production volumes to be at Q3 levels, while its shipments to the domestic market are expected to increase.
Production (thousand mt) |
Q3 2010 |
Q2 2010 |
Change |
Jan-Sept 2010 |
Jan-Sept 2009 |
Change |
Cast iron |
2,315 |
2,320 |
-0.2% |
6,871 |
5,924 |
16.0% |
Crude steel |
2,938 |
2,985 |
-1.6% |
8,654 |
7,060 |
22.6% |
Finished products output, incl.: |
2,661 |
2,623 |
1.5% |
7,737 |
6,437 |
20.2% |
Slabs and billets |
83 |
115 |
-27.8% |
198 |
2 |
n/a |
Long products |
336 |
203 |
65.5% |
749 |
829 |
-9.7% |
Flat hot-rolled products |
1,371 |
1,397 |
-1.9% |
4,276 |
3,903 |
9.6% |
High value-added (HVA) products, incl.: |
872 |
908 |
-4.0% |
2,514 |
1,704 |
47.5% |
Thick plate (mill 5000) |
245 |
228 |
7.5% |
649 |
29 |
n/a |
Flat cold-rolled products |
277 |
306 |
-9.5% |
834 |
798 |
4.5% |
Downstream products, incl.: |
349 |
374 |
-6.7% |
1,030 |
877 |
17.4% |
Tin plate |
41 |
66 |
-37.9% |
166 |
170 |
-2.4% |
Galvanized steel |
153 |
157 |
-2.5% |
430 |
374 |
15.0% |
Color-coated steel |
67 |
52 |
28.8% |
158 |
152 |
3.9% |
Band |
30 |
34 |
-11.8% |
90 |
78 |
15.4% |
Formed section |
38 |
48 |
-20.8% |
136 |
54 |
151.9% |
Pipes |
20 |
16 |
25.0% |
51 |
48 |
6.3% |
Shipments by market: |
||||||
Domestic shipments |
1,835 |
1,712 |
7.2% |
5,112 |
3,581 |
42.8% |
Export shipments |
826 |
910 |
-9.2% |
2,625 |
2,857 |
-8.1% |