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MMK Group Trading Update for Q2 and H1

Steel News - Published on Wed, 17 Jul 2019

Image Source: SteelGuru
Russian steel giant MMK has announced trading update for Q2 of 2019. MMK Group’s total sales of finished products in Q2 2019 totalled 2,856 thousand tonnes, up 2.7% QoQ. MMK Group’s sales of HVA products in Q2 2019 totalled 1,426 thousand tonnes, up 6.6% QoQ. The share of HVA products in total sales increased to 49.9%. MMK Coal’s coal concentrate production in Q2 2019 totalled 487 thousand tonnes, down 37.3% QoQ.

MMK Group’s total sales of finished products in H1 2019 totalled 5,638 thousand tonnes, down 0.7% YoY. MMK Group’s sales of HVA products in H1 2019 totalled 2,764 thousand tonnes, up 1.4% YoY. The share of HVA products in total sales increased to 49.0%. MMK Coal’s coal concentrate production in H1 2019 totalled 1,263 thousand tonnes, down 10.5% YoY.

MMK Group highlights by key segments

Pig iron output in Q2 2019 increased by 2.3% QoQ due to the completion of the scheduled overhaul of the blast furnace No.7 in mid May and productivity growth.

At the same time, the volume of steel output in Q2 2019 remained flat QoQ. The increase in pig iron volumes allowed the company to decrease the share of metal scrap in burden.

The volume of shipments in Q2 2019 was flat QoQ and amounted to 2,730 thousand tonnes. Sustainable shipments were a result of the continued high demand in the domestic market amid the scheduled repairs of rolling equipment.

In Q2 2019, the domestic market saw continued high demand for steel products, which was associated with the beginning of the construction season and high volume of orders from manufacturers of large diameter pipes. These factors allowed the Company to maintain shipments to the domestic market flat QoQ (2,444 thousand tonnes), as a result, the share of shipments to the domestic market amounted to about 90%.

The volume of shipments of long products in Q2 2019 remained flat QoQ and amounted to 452 thousand tonnes amid the recovery of business activity at the beginning of the construction season.

The volume of shipments of hot-rolled products for Q2 2019 remained low, which was due to the continued reconstruction of Mill 2500 under the current investment programme.

The volume of shipments of HVA products for Q2 2019 increased by 1.5% QoQ and amounted to1,112 thousand tonnes. This growth is mainly due to the increase in shipments of thick plate and the high capacity utilisation rates for deep processing production.

The decrease in the volume of shipments of cold-rolled products for Q2 2019 by 7.9% QoQ was mainly due to an increase of galvanised steel production at MMK’s site and an increase in sales of polymer-coated steel produced at Lysvensky Metallurgical Plant.

In Q2 2019, the volume of shipments of Mill 5000 products increased by 7.5% QoQ and reached 287 thousand tonnes. This growth was associated with the continued supply of steel for the production of large diameter pipes as part of the implementation of major pipeline projects by Gazprom.

Source :

Posted By : Sanju Moirangthem on Wed, 17 Jul 2019
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