Russian steelmaker MMK Group has released its operational results for the second quarter and the first half this year.
Accordingly, in the second quarter this year, the company’s crude steel output totaled 3.40 million mt, increasing by 3.1 percent quarter on quarter, reflecting favorable market conditions, while its pig iron production increased by 2.6 percent compared to the previous quarter totaling 2.64 million mt, driven by the increase in productivity of blast furnaces. In the given quarter, MMK’s finished steel sales totaled 3.32 million mt, up 14.3 percent compared to the previous quarter, driven by high steel demand.
In the first half this year, the company’s crude steel output totaled 6.70 million mt, increasing by 24.5 percent year on year, as no overhauls took place at converter facilities, as well as the completion of hot rolling mill 2500’s modernization. MMK’s pig iron production in the given period increased by 17.3 percent year on year to 5.21 million mt. In the January-June period this year, the company’s finished steel sales totaled 6.22 million mt, up by 25.3 percent year on year, driven by the high utilization rate of hot rolling mill 2500 after its modernization.
The company’s Turkey-based subsidiary MMK Metalurji’s total sales in the second quarter this year increased by 12.7 percent quarter on quarter to 221,000 mt, reflecting the steadying of semi-finished hot rolled stock shipments, while its total sales in the first half totaled 416,000 mt, up by 29.5 percent year on year. At the same time, exports exceeded domestic sales in Turkey.
According to MMK, seasonal recovery of demand in Russia and continued favorable conditions in global markets will positively impact the company’s sales in the third quarter. Sales will be additionally supported by the start of hot tests at the electric arc furnace facility. Completion of the reconstruction of reverse cold rolling mill 1700 and 100 percent utilization of premium products equipment will positively impact the structure of the company’s sales portfolio. Operational excellence measures implemented under MMK’s updated strategic initiatives will further boost the company’s profitability in the third quarter this year.