Magnitogorsk Iron and Steel Works (MMK) group sold 7.43mn mt steel products in the Russian market in 2020 maintaining historic levels despite the COVID-19 pandemic, according to a company release quoting Deputy Sales Director of MMK Trading House Dmitry Cherepanov. Hot-rolled products and grades accounted for 60pc of sales. Around 30pc or 2.39mn mt was sold to metal trading companies, while approximately half of the production volume was shipped to metal trading warehouses located in the Urals, Volga region, Siberia and the Far East. Sales of hot-rolled products and grades were 34pc and 29pc, respectively.
In 2020, market participants were forced to work amid unusually high volatile conditions. Pandemic restrictions in Q2 reduced market size by 19pc from 2019 but returned to previous values in Q3, and experienced growth in demand and prices by the end of Q4. Russia’s overall metal consumption declined by a less than expected 3.2pc in 2020. In H2 2020, factors such as deferred demand, government stimulus, increased spending on national projects, higher housing builds and low inventory supported growth.
Around 40pc of MMK’s total sales was through its network, MMK Trading House. MMK Trading House’s sales volume in 2020 increased by 11pc from 2019 amid increased shipments to the construction industry up by 17pc and transport engineering sector up by 18pc.