Russian steelmaker MMK Group has released its operational results for the fourth quarter and the full year of 2021.
Accordingly, in the fourth quarter last year, the company’s crude steel output totaled 3.5 million mt, increasing by 3.3 percent quarter on quarter, reflecting higher steel output at its Turkish asset, while its pig iron production decreased by 1.5 percent compared to the previous quarter totaling 2.58 million mt, due to the shutdown of blast furnace No. 9 for an overhaul at the end of the year. In the given quarter, MMK’s finished steel sales totaled 3.49 million mt, up 26.6 percent compared to the previous quarter, driven by favorable market conditions.
In 2021, the company’s crude steel output totaled 13.59 million mt, increasing by 17.4 percent year on year, as converter facilities were not being overhauled during this period, and the electric arc furnace facility was launched at the Turkish asset. MMK’s pig iron production in the given period increased by 11.5 percent year on year to 10.42 million mt. In the given year, the company’s finished steel sales totaled 12.48 million mt, up by 16.0 percent year on year, driven by the high utilization rate of hot rolling mill 2500 after its modernization in 2020.
The company’s Turkey-based subsidiary MMK Metalurji’s total sales in the fourth quarter last year increased by 52.2 percent quarter on quarter to 379,000 mt, mainly due to growing sales of hot rolled products amid the mid-year launch of the hot rolling complex, while its total sales last year came to 1.04 million mt, up by 40.9 percent year on year, reflecting higher demand in the global markets.
According to MMK, higher steel output at its Turkish asset in the first quarter of 2022 will have a positive impact on the company’s sales volumes, offsetting the effect of the overhaul of blast furnace and converter facilities at Magnitogorsk. Stable demand in Russia combined with a high utilization of equipment manufacturing premium products will positively impact MMK’s sales mix. Operational excellence measures implemented under MMK’s updated strategic initiatives will further boost the company’s profitability in the first quarter of 2022.