Russian steel maker Magnitogorsk Iron & Steel Works announced decrease in hot metal production by 17% YoY to 4.318 million tonne in January-June 2022 due to lengthy overhauls in blast furnace production and negative market conditions. The volume of steel production decreased by 9.5% YoY to 6.063 million tonnes compared to 6 months of last year due to a decrease in demand against the backdrop of the current unfavorable situation in the metal products market. Sales of steel products across MMK Group amounted to 5.246 million tonnes, down 16% YoY due to lengthy equipment overhauls at the beginning of the year, export market restrictions, as well as a significant slowdown in business activity in Russia and difficult market conditions in the second quarter. Share of sales of premium products for 6 months. 2022 at the same time amounted to 45%.Average selling prices for Q2 of 2022 rose by 16% QoQ to USD 1,023 per tonne, reflecting a significant strengthening of the Russian rouble vs the US dollar. Yet, rouble prices for metal products fell by 10% on the back of a significant drop in demand in Russia. In HI of 2022, average selling prices grew by 13% YoY to USD 947 per tonne, driven by more favorable market conditions at the start of the year compared to 2021.The cash cost of slab for Q1 2022 rose by 29% QoQ to USD 528 per tonne amid stronger Russian rouble and high commodity prices. In HI 2022, the cash cost of slab grew by 29% YoY to USD 469 per tonne amid a rally in key commodities driven by global market trends.Therefore, the Company's profit margins came under significant pressure in Q2 2022 amid low demand in the Russian market, challenging export market conditions, falling rouble prices for metal products and continued high prices for key raw materials.The production of coal concentrate increased by 5% to 1.765 million tonnes as compared to the previous year due to an increase in MMK's demand for grades of coking coal from third-party suppliers.