MMK Group operating results for the 4th quarter and 12 months of 2020

PJSC Magnitogorsk Iron and Steel Works (“MMK” or the “Group”) announces operating results for the 4th quarter and 12 months of 2020.

Pig iron smelting increased by 6.0% qoq to 2,521 thousand tonnes on the back of increased demand for metal products and increased production.

Steel production increased by 14.9% qoq to 3,312 thousand tonnes due to increased demand and increased production at the 2,500-year-old mill following the completion of its planned reconstruction in Q3.

Sales of marketable products across the MMK Group amounted to 3,045 thousand tonnes, up 11.1% quarter-on-quarter.

Sales of premium products across the Group remained at the level of the previous quarter and amounted to 1,343 thousand tonnes (44.1% of total sales).

Coal concentrate production by MMK-UGOL increased by 16.0% qoq to 837 thousand tonnes due to the completion of a low-productivity longwall and the launch of a new one.

BASIC INDICATORS
The volume of pig iron smelting decreased by 6.7% compared to 2019 to 9,344 thousand tons, which is due to longer scheduled repairs in blast furnace production and a decrease in demand amid the coronavirus pandemic.

Steel production for 12 months of 2020 decreased by 7.1% to 11,574 thousand tonnes compared to the same period last year against the backdrop of the planned reconstruction of the 2,500-year-old mill and a slowdown
business activity due to unfavorable epidemiological
situation.

Sales of marketable products across the MMK Group decreased by 5.0% year-on-year to 10,755 thousand tonnes.

Sales of premium products decreased by 6.1% year-on-year to 5,143 thousand tonnes. The share of such products in the total sales volume decreased to 47.8%.

Coal concentrate production in 12 months of 2020 amounted to 3,059 thousand tonnes, an increase of 17.0% compared to the same period last year due to the completion of the modernization of the concentrator, which took place in 2019, and an increase in the processing of purchased coals.

Source: MMK Press Center