MMK sold over 7.4 million tonnes of rolled metal on the domestic market in 2020

Magnitogorsk Iron and Steel Works: in 2020 MMK sold over 7.4 million tonnes of metal products to the Russian market
Despite the difficulties associated with the coronavirus pandemic, the Magnitogorsk Iron and Steel Works (MMK) sold 7.43 million tonnes of metal products to the Russian market last year, which is in line with usual figures. About 30% (2.39 million tons) of them were sold to metal trading companies. These figures were announced by Dmitry Cherepanov, Deputy Director for Sales of TH MMK, speaking at the regional conference Metal Trade Russia.
Dmitry Cherepanov added that in 2020, metal products market participants were forced to work in an environment of unusually high uncertainty and volatility. Due to restrictive measures in the second quarter, the market dipped 19% compared to 2019, but returned to its previous values ​​in the third quarter, and experienced a new period of growth in demand and prices at the end of the year. At the end of the year, the overall decline in metal consumption in Russia turned out to be less than expected and amounted to 3.2%. The main drivers of growth in the second half of 2020 were deferred demand, the impact of government support measures, increased spending under national projects, growth in housing construction and low inventory levels.
In 2020, MMK sold 7.4 million tonnes of steel products to the Russian market. The share of sales to metal trading companies was about 30%. About half of this production was directed to metal warehouses located in the "native" regions (the Urals, the Volga region, Siberia and the Far East). The most demanded products were hot-rolled steel and grades, which accounted for more than 60% of sales (34% and 29%, respectively).
About 40% of MMK's total sales to metal trading enterprises and metal centers are sold through its own sales network - MMK Trading House, which is the plant's official representative in all regions of Russia and the Republic of Kazakhstan. Currently, the MMK Trading House has 32 branches in Russia (which allows it to sell products to all leading industrial centers), as well as five branches in the Republic of Kazakhstan.
In 2020, TH MMK demonstrated shipment dynamics similar to general market trends - a decline in the second quarter, then growth in the second half of 2020. In general, the increase in sales volume compared to 2019 amounted to 11% (the average order size also increased by the same amount), shipments to construction industry enterprises due to state support measures increased by 17%, to transport engineering enterprises - by 18%.
Dmitry Cherepanov, Deputy Director for Sales of TD MMK, also spoke about the increased customer focus of the Company, which MMK considers to be one of the key elements of further enhancing competitiveness.