PJSC Magnitogorsk Iron &
Steel Works (“MMK”, or the “Group”) (MOEX: MAGN) announces
its Trading Update for Q2 and H1 2023.
INDICATORS FOR Q2 2023 VS Q1 2023
Pig iron output increased by 9.6%
quarter-on-quarter (q-o-q) to 2,569 thousand tonnes due to the
completion of overhauls of blast furnace facilities.
Steel output grew by 13.0% q-o-q to 3,457
thousand tonnes reflecting steady demand on the Russian and
neighbouring countries’ markets as well as the partial recovery in
business activity in Turkey in Q2 2023.
Group sales of metal products totalled 3,065
thousand tonnes, an increase of 11.0% q-o-q amid favourable market
conditions on the Russian and neighbouring countries’ markets and
higher sales of the Turkish division due to partial recovery of
demand on the Turkish market after February 2023 earthquake. Sales
of premium products were up by 13.5% to 1,332 thousand tonnes due to
seasonally higher demand from metal processing and construction
industries on cold-rolled, galvanised and colour-coated steel. The
share of premium products in the sales portfolio increased to 43.4%.
Coal concentrate production totalled 943
thousand tonnes, up by 10.0% q-o-q reflecting higher demand on
coking coal form MMK as well as an increase in toll processed coals.
INDICATORS FOR H1 2023 VS H1 2022
Pig iron output grew by 14.0% year-on-year
(y-o-y) to 4,914 thousand tonnes due to lower blast furnace
overhauls duration compared to the previous year.
Steel output increased by 7.5% y-o-y to 6,515
thousand tonnes, reflecting favourable conditions on the Russian
market in Q2 2023. Steel output at the Magnitogorsk facilities
increased by 17.8% to 6,380 thousand tonnes, while steel production
at the Turkish asset decreased by 79.1% to 135 thousand tonnes
reflecting a decline in business activity in Turkey amid
macroeconomic headwinds and the earthquake in February 2023.
Group sales of metal products totalled 5 826
thousand tonnes, up by 11.1% y-o-y due to favourable conditions on
the Russian and neighbouring countries markets. Sales of premium
products increased by 5.1% y-o-y to 2 504 thousand tonnes driven by
an increase in sales of cold-rolled, galvanized and polymer-coated
steel amid higher demand from metal processing and construction
Production of coal concentrate increased by
2.0% y-o-y to 1,800 thousand tonnes.
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