Russian steelmaker MMK’s crude steel output lowered in 2019 amid mill upgrades and lowered domestic steel demand. Crude steel output was down by 1.6pc to 12.46mn mt from the prior year as a result of the reconstruction of its hot rolling mill amid weak domestic steel demand. In 2018, the company had produced 12.66mn mt of crude steel and 11.7mn mt of commercial steel products.
In 2019, MMK’s pig iron output rose by 1.6pc to 10.01mn mt on year from 9.86mn mt in 2018 led by lowered maintenance work at its blast furnace.
MMK group’s total sales of finished products totalled 11.31mn mt, down 3.0pc from the year prior. The sales of high value-added products including thick plate, flat CRC and other downstream products were 5.477mn mt, which forms 48.4pc share of its total finished products, up 0.9pc on year. Coal concentrate production totalled 2.614mn mt, down 12.9pc from the prior year.
In the December quarter, pig iron output increased by 1.7pc to 2.64mn mt from the prior quarter due to improved productivity of blast furnaces. Crude steel output was down by 3.9pc to 3.07mn mt due to a seasonal decline in demand.
Outlook
MMK expects domestic steel prices to recovery in the March quarter. Stabilizing iron ore and coal concentrate markets and higher flat steel prices in Turkey would support the company’s margins, despite seasonally weak demand, said the company. Also, the reconstruction work at hot-rolling Mill 2500 will be initiated in March 2020 in line with the current investment programme.