Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Magnitogorsk Iron & Steel Steams Ahead
December 3, 2012 00:47

 According to its Q3 IFRS financial report, OJSC Magnitogorsk Iron and Steel Works increased its steel production 5 percent year-on-year in the 3Q to 3.36 million metric tons.

The company also grew its 3Q steel product output by 3 percent quarter-on-quarter to 2.858 million metric tons. More than 78 percent of its supplies went to the highly diversified domestic market, which saw a 3 percent hike in volume.

Overall, the company’s steel output grew 2 percent quarter-on-quarter.

According to the statement, MMK expects that seasonal slowdown in business activity on the domestic market will bring down volumes of finished steel products in Q4 2012.

And with world steel prices close to their record lows, MMK does not expect a recovery in prices sooner than early 2013 with the beginning of the construction season and inventory restocking.

However, the company’s outlook remains optimistic due to improve d product mix, a strong position on the domestic market and the continued decline in prices for key raw materials.

You can download the full report here.

According to Vedomosti daily, Magnitogorsk Iron and Steel Works is aiming for higher profitability as it cuts its capex and looks at more ways to drive down costs.

The board of directors is going to meet in December to discuss the corporate strategic blueprint until 2022, with the costs reduction being the key goal in mind.

Experts admit the company has enough potential to reach its objectives, mainly due to:

·        MMK doesn't have a long list of acquisitions or aggressive expansion plans.

·        MMK is not a vertically integrated company, and with sinking prices for ore, the absence of mining assets can prove to be an advantage.

Even today it spends some $400 to produce a tonne of steel, sharing second place with NLMK and trailing behind leader Severstal, with $345.

More video can be found here.


Author: Mikhail Vesely

Tags: Magnitogorsk Iron and Steel Works Magnitogorsk Severstal Russian business Russian metal 

Next Previous

You might also find interesting:

Russia Will Repay Soviet Debt To Yugoslavia Roman Shirokov Picks Football Over Bickering Russia Increases Trade With Brazil Top Direct Investments In Russia RUSSIA CALLING! Investment Forum

comments powered by Disqus

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

Russian Parliament in Action

search on the map
Archeology  Mercedes-Benz Fashion Week Russia  Carpentry  Russian law  Pushkov  Russian Literature  Russian labour market  Art Criticism  Russian customs  Cherdakly  Ostrogoschsk  Russian Museum  Fabio Capello  Vitaly Pushnitsky  Oscar Rabin  Russian rouble  Russian Cinema  Okean Elzy  medicine  Painting  Russian transportation  Dagestan  Russian tourism  Buddhist temple  Russian business  Novosibirsk Zoo   The Hermitage Museum   Russian society  Moscow  Russian history  human rights  Yury Annenkov  Irkutsk Region  Folk Arts  Russian Film Directors  Sheregesh  Crazy Russians  Russian human rights activists  Czech Republic  Nicholas Roerich Memorial Estate in Izvara  Weapon Museum  concerts in Russia  Cars  Chechnya  Moscow Theatres  Burial Grounds  Russian opera singers  flight discounts  Exhibitions in Moscow  Lyubov Sokolova 

Travel Blogs
Top Traveling Sites