Magnitogorsk Iron and Steel Works (MMK) expects its steel product output growth at 2-3% in 2020, Director for Economy Andrei Yeryomin announced during an investor day.
He said that production could decrease in January–June 2020 due to seasonal factors and repairs on the hot rolling mill.
Yeryomin also said that MMK could improve the outlook for output in October–December to a 4.5% decline from earlier expected 6% on the back of steel price recovery on export markets.
“There is a possibility that we can improve this figure by the year-end: a reduction by 4.5–5% instead of 6%,” the official said.
Demand for metal products in Russia can grow by 5% in 2019 and by 1.5-2% in 2020, he said, adding that the construction and pipeline industries contributed to the rise, as well as the car, railcar and machinery industries.
Global demand can grow by 1.3-1.5% in 2021 and 2022.
The average export price is estimated at $400 per ton at the start of 2020, and on the Russian market there will be a $90 per ton premium. (Prime/Ukrainian metal)