MMK Group reduced steel production by 9.5% in the first half of the year

The MMK Group (the flagship asset is the Magnitogorsk Iron and Steel Works) produced 6.063 million tons of steel in the first half of 2022, which is 9.5% lower than the same period last year, the company said.

The volume of steel production in the II quarter fell by 7.9% (in the I quarter – 3.17 million tons), to 2.892 million tons.

Sales of commodity metal products decreased in the first half of the year by 15.7%, to 5.246 million tons. In the second quarter, the drop compared to the first quarter was 18.1%, to 2.362 million tons.

The plant explained the quarterly drop in sales by „squeezing demand for metal products in the Russian market, existing restrictions and unfavorable conditions on export markets.”

Average selling prices in the second quarter fell by 15.7% qoq to $1,023/t, reflecting the significant strengthening of the Russian ruble against the US dollar. Ruble prices for steel products fell by 10.1% due to a significant decline in demand in the Russian market. In the first half of the year, prices rose by 13.3% to $947 per ton due to more favorable market conditions in early 2022 compared to last year.