MMK Reports Surge in Production & Sales in Apr-Jun Quarter
Russian steel maker PJSC Magnitogorsk Iron & Steel Works announced that its pig iron output in April-June 2021 quarter increased by 2.6% QoQ to 2.640 million tonnes, driven by the increase in productivity of blast furnaces amid continuing high steel demand while steel output grew 3.1% QoQ to 3,401 million tonnes, reflecting favourable market conditions. MMK Group’s sales of steel products totalled 3.320 million tonnes, up 14.3% QoQ, driven by high steel demand. Sales of the Group's premium products were up 20.6% QoQ to 1,392 million tonnes, driven by seasonal growth in demand.
In Russia, demand for rolled steel in Q2 2021 stayed high, supported by the continuing recovery of the Russian economy after the recession of 2020. During the first five months of 2021, apparent steel use of rolled steel in Russia grew 6.5% YoY, with May figures up as high as 35.9% YoY. The growing seasonal demand in the construction industry, ongoing national projects and easing of pandemic-related restrictions were the key drivers for the Russian steel products market in Q2 2021.
Average selling prices for Q2 2021 grew by 32.4% QoQ to USD 944 per tonne, driven by an upward trend in global prices for metal products amid continued global supply constraints. In H1 2021, prices grew by 49.3% YoY to USD 836 per tonne, driven by favourable market dynamics amid last year’s low base