Russia-based Magnitogorsk Iron and Steel (MMK) expects sales to grow in Q4 2020 (October-December) due to pent-up demand from construction industry aided by government’s economic stimulus packages.
The company expects prices to remain flat in Q3 from the previous quarter amid stabilisation of hot-rolled coil prices in the Black Sea region. The company’s capital expenditure is committed to grow on Q-o-Q basis, in line with the implementation schedule for their.
In Q3, MMK produced 2.88mn mt of crude steel, up by 22.2pc from the prior quarter. Output increased due to recovery in business activity along with higher utilisation of newly launched Hot-Rolling Mill 2500 in July.
Pig iron output increased by 13.9pc to 2.37mn mt from the prior quarter, driven by recovery in steel demand,,and the completion of repair and maintenance of BF No. 2.
Steel output in first nine months (January-September) dropped by 12pc to 8.26mn mt due to low consumption of steel during the schedule reconstruction of Hot-Rolling Mill 2500 and a slowdown in economic activity in Q2 due to COVID-19 pandemic.
The company’s total sales surged by 23.3pc to 2.74mn mt from the previous quarter. However, in the first nine months, sales fell by 9.7pc to 7.71mn mt compared to prior-year quarter. Its High Value Added (HVA) products sales contributed 48.9pc, an uptick in Q3 as Russia gradually recovers from the slowdown aided by the seasonal rise in demand for rolled products in construction.
MMK’s Production and Sales fig:
|Particulars (fig in mn mt)||Q3 2020||Q2 2020||Y-o-Y||9M 2020||9M 2019||Y-o-Y|
|Crude Steel Production||2.88||2.35||23%||8.26||9.39||-12%|
|Pig Iron production||2.37||2.08||14%||6.82||7.40||-8%|