MMK cuts steel output 26.6% QoQ, sales of metal products 18.7% in Q3
MOSCOW. Oct 17 (Interfax) - Magnitogorsk Iron & Steel Works (MMK) cut steel production 26.6% quarter-on-quarter to 2.48 million tonnes in Q3 2024 owing to repairs to the blast furnace, a decline in purchasing activity in Russia because of rising interest rates, the end of the preferential mortgage program, as well as unfavorable conditions on Turkey's steel market, the company said.
Consequently, MMK suspended steel production at the MMK Metalurji asset in Turkey last quarter, according to the company's published data.
The group's sales of metal products fell 18.7% quarter-on-quarter to 2.48 million tonnes as well.
Sales of premium products dropped 14.8% to 1.19 million tonnes predominately owing to a decline in sales of cold-rolled and coated rolled products amid the construction sector's high sensitivity to the current macroeconomic factors. The share of premium products in the sales portfolio totaled 48%.
Major repairs to the blast furnace, as well as planned major repairs to the converter, will significantly affect MMK's production capabilities in the fourth quarter of 2024. Moreover, the effect of the high key rate on investment activity, the decline in mortgages, and the seasonal factor are expected to continue affecting the slowdown in purchasing activity on the Russian market. MMK forecasts that the consumption of metal in the automotive industry and other sectors of machine manufacturing should remain stable.
Production Q3 2024 Q2 2024 dynamics 9M 2024 9M 2023 dynamics Steel 2 479 3 377 - 26.6% 8 826 9 869 - 10.6% Steel segment Russia 2 479 3 245 - 23.6% 8 552 9 611 - 11.0% Steel segment Turkey 0 133 - 274 258 6.4% Pig iron 2 363 2 653 - 10.9% 7 361 7 526 - 2.2% Coal concentrate 518 616 - 16.0% 1 864 2 671 - 30.2% Iron raw materials 667 570 17.1% 1 645 1 739 - 5.4% MMK group sales Commodity products 2 478 3 049 - 18.7% 8 259 8 893 - 7.1% Rolled products 264 306 - 13.5% 878 898 - 2.3% Hot-rolled products 1 024 1 348 - 24.0% 3 745 4 150 - 9.8% Premium products 1 189 1 396 - 14.8% 3 636 3 844 - 5.4% - incl. thick sheet (mill 5000) 143 202 - 29.1% 502 566 - 11.4% Cold-rolled products 249 314 - 20.7% 744 852 - 12.7% Share of premium products 48.0% 45.8% +2.2 pp 44.0% 43.2% + 0.8 pp
