The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has released its operational results for the second quarter and the first half of the current year.
Accordingly, in the second quarter, the company recorded a 5.2 percent rise in its crude steel output to 3.18 million mt and an 8.4 percent increase in its finished steel product output to 2.93 million mt, both compared to the previous quarter. In the second quarter, MMK’s finished steel shipments increased by 7.7 percent from the first quarter to 3 million mt. This increase was due to the start of the seasonal demand recovery in the domestic market and the increase in steel prices in MMK’s sales markets.
Meanwhile, in the first six months, MMK's crude steel production amounted to 6.2 million mt, up 0.2 percent, while the company’s finished steel products output increased by 2.2 percent to 5.64 million mt, both year on year. In the first half of this year, MMK’s finished steel shipments amounted to 5.79 million mt, up 2.9 percent year on year, due to the increase in sales of high-margin products in the domestic market and higher export sales volumes.
MMK said that in July this year it sees a slowdown in demand for its products in the domestic market, compared to the high results of the second quarter, while demand coming from the export markets remains flat. In addition, according to MMK, the price correction at the end of the second quarter in the export markets will put pressure on domestic market prices.