PJSC Magnitogorsk Iron &
Steel Works (“MMK”, or the “Group”) (MOEX: MAGN) announces
its Trading Update for Q4 and 12M 2022.
INDICATORS FOR Q4 2022 VS Q3 2022
Pig iron output increased by 4.0%
quarter-on-quarter (q-o-q) to 2,429 thousand tonnes due to steady
demand for metal products on the Russian market.
Steel output grew by 1.2% q-o-q to 2,828
thousand tonnes reflecting higher pig iron output amid suspension of
steel production facilities at the Turkish division in November 2022
driven by global market headwinds and increased costs of electricity
and natural gas in Turkey.
Group sales of metal products were down by
3.2% q-o-q to 2,684 thousand tonnes mainly driven by a decrease in
export sales, partially offset by a clearance of inventories. Sales
of premium products rose by 2.7% to 1,176 thousand tonnes,
reflecting higher sales of cold-rolled products and galvanized steel
on the back of partial recovery of demand from automotive industry
and stable demand from construction and metal processing industries.
The share of premium products in the sales portfolio was 43.8%.
Coal concentrate production remained almost
flat q-o-q at 870 thousand tonnes.
INDICATORS FOR 12M 2022 VS 12M 2021
Pig iron output decreased by 12.9%
year-on-year (y-o-y) to 9,078 thousand tonnes due to lengthy
overhauls at blast furnace facilities and deteriorating global
Steel output fell by 14.0% y-o-y to 11,687
thousand tonnes driven by overhauls at blast-furnace facilities and
unfavourable conditions on export markets amid the last year’s
Group sales of metal products amounted to
10,703 thousand tonnes, down by 14.2% y-o-y, due to existing
restrictions on export markets, overhauls of main equipment at the
beginning of the year and a significant slowdown in business
activity on international markets. Sales of premium products
contracted by 9.7% to 4,704 thousand tonnes driven by a decrease in
sales of galvanized steel by 25.7% y-o-y to 1,480 thousand tonnes
amid challenging export market conditions and a lower demand from
automotive industry. The share of premium product in sales portfolio
Production of coal concentrate increased by
1.9% y-o-y to 3,512 thousand tonnes, driven by MMK’s stronger
demand for third-party supplies of coking coal grades.
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