MMK’s steel sales to rise in Q2 amid better demand

Thursday, 15 April 2021 13:34:48 (GMT+3)   |   Istanbul
       

Russian steelmaker MMK Group has released its operational results for the first quarter this year.

Accordingly, in the first quarter this year, the company’s crude steel output totaled 3.30 million mt, increasing by 9.2 percent year on year due to the completion of modernization of Hot Rolling Mill 2500, while its pig iron production increased by two percent compared to the previous quarter totaling 2.57 million mt, driven by continuing high steel demand, while it rose by 9.2 percent compared to the same period of the previous year. In the given quarter, MMK’s finished steel sales totaled 2.90 million mt, down 4.6 percent from the previous quarter, and up by 5.8 percent year on year driven by the high utilization rate of Mill 2500 after the modernization.

The company’s Turkey-based subsidiary MMK Metalurji’s total sales in the first quarter this year increased by 17 percent year on year to 196,000 mt. Total sales decreased by 10.9 percent compared to the previous quarter, reflecting the shortage of semi-finished hot-rolled stock amid challenging weather conditions in Russia and in Turkey in the first quarter, which increased the delivery times of sea cargoes.

According to MMK, the favorable conditions in global markets coupled with seasonal growth in demand in Russia will positively impact the company’s sales in the second quarter this year. MMK expects the reverse Cold-Rolling Mill 1700 to be commissioned in May, positively impacting the structure of the company’s sales portfolio. The beginning of the construction season in Russia and positive dynamics of global prices for metal products amid the continued shortages in foreign markets will support the growth of prices for MMK Group’s metal products in the second quarter. Operational excellence measures implemented under MMK’s updated strategic initiatives will further boost the company’s profitability in the second quarter this year. 


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