Russian steel producer Magnitogorsk Iron and Steel Plant (MMK) announced its first quarter operational results for 2025. The company's total steel production increased by 8.6% q/q to 2.57 million tons, mainly due to the completion of major maintenance of oxygen converter No.2. However, y/y production decreased by 13.4%.
Moderate Increase in Metal Product Sales, Decline in Premium Products
MMK's metal product sales increased by 2.8% q/q to 2.43 million tons. This increase was driven by demand for hot rolled steel products, while cold rolled and coated products declined due to seasonal weakness and challenging macroeconomic conditions.
Premium product sales decreased by 6% to 1.01 million tons in this period. Premium products accounted for 41.7% of the sales portfolio. In premium products, cold rolled steel and pipe decreased by 15% and 33.5%, respectively, while profile increased by 12.4%.
Standing Out with Sustainability and Innovation Efforts
MMK also recorded positive developments in its sustainability performance. In the first quarter of 2025, the work accident frequency rate (LTIFR) decreased by 36.4% to 0.49. Emissions per ton decreased by 7% to 12.85 kg/ton.
In addition, MMK won two gold and one silver medal at the “Arkhimedes” Exhibition for its innovative projects, including AI-powered occupational safety systems and the production of special steel resistant to low temperatures. The company also continued its leadership in industrial tourism, welcoming more than 17,000 visitors in 2024.
Expectations
The company expects an increase in domestic demand for metal products in the second quarter of 2025, driven by the seasonal economic recovery. However, high interest rates are expected to continue to weigh on business activity.
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