MMK ups steel product 5% to 3.36 mln tonnes in Q3
MOSCOW. Oct 19 (Interfax) - OJSC Magnitogorsk Iron & Steel Works (MMK) increased steel production 5% year-on-year to 3.36 million tonnes in the third quarter, a company statement says.
Steel output was also up quarter-on-quarter - by 2%.
MMK Group operating highlights ('000 tonnes):
| Products | Q3 2012 | Q2 2012 | % | 9M 2012 | 9M 2011 | % |
| MMK Group crude steel | 3,357 | 3,294 | 2% | 10,068 | 9,087 | 11% |
| MMK crude steel | 3,187 | 3,012 | 6% | 9,316 | 8,899 | 5% |
| MMK Metalurji crude steel | 170 | 282 | -40% | 752 | 188 | 4x |
| MMK Group steel products | 3,072 | 3,062 | 0.3% | 9,154 | 8,299 | 10% |
| MMK steel products | 2,858 | 2,776 | 3% | 8,400 | 8,023 | 5% |
| MMK-Metiz steel products | 129 | 142 | -9% | 380 | 362 | 5% |
| MMK Metalurji steel products | 211 | 284 | -26% | 748 | 272 | 2.7x |
| MMK Group HVA products | 1,276 | 1,209 | 6% | 3,668 | 3,035 | 21% |
| MMK Group HVA products share | 40% | 39% | 39% | 37% | ||
| Belon coal concentrate | 985 | 761 | 29% | 2,521 | 2,334 | 8% |
| Iron ore | 1,021 | 1,107 | -8% | 3,176 | 3,680 | -14% |
Finished steel products output in Q3 2012 amounted to 2.858 million tonnes, which is 3% more that in Q2 2012. Sales to the high-priority domestic market increased by 3% in volume, accounting for more than 78% of all shipments in Q3.
The volume of finished products from Mill 5000 in Q3 2012 decreased by 8% compared to Q2 2012 and amounted to 179 thousand tonnes. The lower volume of shipments of flat hot-rolled products was a result of lower volumes of orders from pipe makers due to the postponement of oil and gas projects.
The production and shipment volume of cold-rolled products in Q3 2012 increased by 25% compared to Q2 2012 due to the launch of the Mill 2000 and also thanks to growth (more than 30%) of shipments of metal products to customers in the automotive sector.
The increase in shipments of galvanized steel and colour-coated products in 9M 2012 by 32% and 29% y-o-y, respectively, is related to the recovery of the construction industry in Russia.
Thanks to the improvement in product mix in Q3 2012 and the growth in shipment volumes and share of sales to the domestic market, the company succeeded in minimizing the effect of price deflation in export markets.
In Q4 2012 sales volumes for finished products may be influenced by a seasonal decline in business activity on the domestic market, MMK said.
The growth in demand for steel in Russia and the world in general along with the increasing production capacity of MMK Group in Turkey make it reasonable to expect higher sales volumes for MMK Group in 2012 in comparison to 2011, the company said.
