MMK sees a significant drop in steel production and sales in Q2

MMK sees a significant drop in steel production and sales in Q2

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As expected, Russian steelmaker MMK Group’s production and sales results have worsened significantly in the second quarter this year.

Accordingly, in the second quarter of this year, the company saw a 11.3 percent decrease in its pig iron output to 2.089 million mt, driven by a slowdown in steel demand and caused by an overhaul of blast furnace (BF.No.2), and a 22 percent fall in its steel output, to 2.358 million mt due to the scheduled reconstruction of hot rolling mill 2500, both compared to the previous quarter. During the April-June period this year, MMK’s finished steel sales decreased by 19 percent quarter on quarter, to 2.223 million mt. In particular, MMK’s sales of high value added (HVA) products totaled 1.151 million mt, down 12 percent quarter on quarter.

MMK believes, that the recovery of domestic demand that emerged in the late second quarter, coupled with hot rolled prices increase in the Black Sea region might continue next quarter, having a positive impact on the company’s performance and consolidated prices for metal products, in particular.

 

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