Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has released its operational results for the third quarter and the first nine months of the current year.
Accordingly, in the third quarter, the company’s crude steel output increased by 4.4 percent to 3.32 million mt, due to an increase of electric arc furnace (EAF) capacity utilization amid higher demand for steel, and it recorded a 10.2 percent increase in its finished steel product output to 3.17 million mt, mainly due to the seasonal recovery of demand for steel in the domestic market, as well as lower stocks at the company’s warehouses, both compared to the previous quarter.
Meanwhile, in the first nine months, MMK's crude steel production amounted to 9.56 million mt, up 1.9 percent, while its finished steel product output rose by 1.2 percent to 8.75 million mt, both year on year.
According to MMK, high domestic demand in the third quarter enabled it to fully sell its seasonal stocks of high-margin products, which resulted in a significant cash inflow from working capital. The company expects higher sales, improved sales mix and lower costs for key raw materials to result in a significant improvement in its EBITDA for the third quarter. For the fourth quarter, MMK expects a slight decline in sales amid a seasonal slowdown of business in its key markets.