OREANDA-NEWS. MMK's Steel Segment (Russia) announces its operational results for Q1 2016

Pig iron output in Q1 2016 decreased by 5.4% q-o-q to 2,403 thousand tonnes. This was due to maintenance of blast furnace No 9 in January-February 2016.

Crude steel output in Q1 2016 increased by 4.4% q-o-q to 3,025 thousand tonnes. This was due to an increase in electric arc-furnace capacity utilisation to 59% (as compared to 16% in Q4 2015).

In Q1 2016, sales of finished products totalled 2,709 thousand tonnes, up 4.3% q-o-q. This was due to an increase in thick plate shipments from Mill 5000 and the beginning of a seasonal recovery in demand for steel on the domestic market in February-March 2016.

A slight decline in metal shipments to the Russian and CIS market in Q1 2016 (-4.7% q-o-q) was due to seasonal business slowdown in January 2016.

An increase in export sales by 204 thousand tonnes, or 31.9% q-o-q compensated for weak demand on the domestic market in early Q1 2016. As a result the share of export sales in the overall sales structure reached 31.2%.

An 8.7% q-o-q increase in sales of long products in Q1 2016 was due to an increase in sales to metal traders in the second half of the quarter. These traders were replenishing low stocks ahead of the construction season amid price growth expectations.

Sales of HVA products in Q1 2016 increased by 6.3% q-o-q, mainly due to an increase in sales of thick plate from Mill 5000 and cold-rolled products.

The increase in sales of cold-rolled products in Q1 2016 by 4.1% q-o-q was due to an increase in export sales of these products. During this period, the core markets for cold-rolled products were the Middle East and Africa.

The reduction in sales of galvanised steel and polymer-coated steel in Q1 2016 by 14.7% and 12.3% q-o-q, respectively, was due to a seasonal decline in demand for construction products.