MMK’s steel exports down 47% in 2019 amid better local demand, maintenance

Wednesday, 22 January 2020 16:29:56 (GMT+3)   |   Istanbul
       

Russian steelmaker MMK Group has released its operational results for the fourth quarter and the whole of 2019, saying that maintenance at one hot rolled line has been the major reason for lower operating results.

Total steel sales of Russia’s MMK declined by four percent year on year to 10.96 million mt in 2019 due to the maintenance at its 2500 rolling line. Shipments in the domestic market and to neighbouring CIS countries added 7.4 percent and reached 9.7 million mt, while exports dropped by 47.2 percent or 1.125 million mt year on year to 1.26 million mt. according to the company’s report.

MMK’s sales of long steel products did not change much, amounting to 1.78 million mt, but its HRC sales dropped by 8.1 percent year on year to 4.8 million mt. The producer also managed to increase by 23 percent its shipments of heavy plate to 1.02 million mt.

In 2019, MMK’s steel production decreased by 1.6 percent year on year to 12.46 million mt because of lower slab needs during repairs of the 2500 rolling line.

MMK predicts that positive movements which started in the global HRC market in the fourth quarter will continue in the first quarter of 2020. “In the first quarter of 2020, a favourable pricing environment is expected in the domestic market. This will be supported by rising steel prices in Asia, as well as …in Turkey, and limited supply volumes of HRC from the Black Sea basin,” the statement said.


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