Russia’s leading steel producer, Magnitogorsk Iron and Steel Works (MMK), witnessed fluctuations in its production performance during the fourth quarter of 2023, influenced by both internal and external factors impacting the industry, as reported by the rating agency Rusmet.
MMK stated that steel production saw a 7.1% q-o-q decline to 3.12 million tonnes. This reduction was attributed to the maintenance work on the converter at the Magnitogorsk site, causing a temporary slowdown in production.
The group’s steel product sales also experienced a 5.7% decrease to 2.9 million tonnes, primarily due to ongoing repairs in the blast furnace, steel making, and rolling divisions.
Notably, sales of premium products declined by 10.8% to 1.2 million tonnes, driven by reduced demand for cold-rolled products and those with finishing. The share of premium products in the overall sales portfolio dropped to 41.3%.
In the first quarter of the current year, sales are anticipated to be impacted by a seasonal slowdown in construction activity in the domestic market and a reduction in customer inventories due to the increase in the key rate. However, demand is expected to recover by the end of the first quarter or the beginning of the second quarter of 2024, driven by re-stocking and a seasonal uptick in construction activity.
It’s worth noting that MMK recorded a 10.1% increase in steel product sales in 2023.
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and BigMint.