Russia's MMK says output could jump 15 pct

Fri Jan 27, 2012

* MMK says finished steel output could jump 15 pct this year
* Says Russia steel consumption to grow faster than world avg
* Moscow analyst says steel prices bottomed Dec-Jan
* MMK Q4 crude steel output off 2 pct from Q3

MOSCOW, Jan 27 (Reuters) - Magnitogorsk Iron & Steel Works, Russia's third-largest steelmaker, said on Friday that 2012 finished steel output could increase by 15 percent from last year and that demand will be stronger at home than abroad.

"It is expected that steel consumption in Russia will grow in 2012 faster than the world at average," the company said.

"Steel consumption growth, realised investments in equipment modernisation and mastering of new products will help MMK to increase production of finished products in 2012 at its Russian facilities."

Analysts have noted some positive trends in steel demand recently, following price declines in the third quarter on weaker European demand and a decline in Chinese daily output.

"We believe that Russian export steel prices bottomed in December-January; they have increased $30-40/tonne (5-7 percent) year-to-date," Uralsib analyst Dmitry Smolin wrote in a note.

"Our understanding is that the steel price increases are a function of improved export and domestic demand, as well as restocking in Europe and other regions due to very low inventories."

Fourth quarter production at Russia's steel majors was largely flat compared to the previous quarter on seasonal demand factors at home and weak markets abroad.

Evraz, Russia's largest steel producer, said last week that fourth quarter crude steel volumes increased by 3 percent quarter-on-quarter.

MMK, controlled by billionaire Viktor Rashnikov, said fourth quarter output was 3.1 million tonnes, off 2 percent from the previous quarter.

Full year 2011 crude steel output reached 12.2 million tonnes, up from 11.4 million in 2010, the company also said.

(sourced Reuters)

MMK posts 13 percent rise in crude steel output in Q3 over Q2

October26, 2011

In the third quarter of the current year, the crude steel production of Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) totaled 3.18 million mt, up 13 percent compared to the previous quarter. In addition, in the first nine months of the year, MMK registered a five percent increase year on year in its crude steel output to 9.08 million mt.

During the quarter in question, MMK's pig iron production rose by six percent to 2.44 million mt, its long product output increased by 53 percent to 479,000 mt and its flat rolled product output increased by nine percent to 1.5 million mt - all on quarter-on-quarter basis.

According to the MMK statement, its Turkish plant ММK-Metalurji, renamed from MMK-Atakas after acquisition of 50 percent minus one share from the Atakas family, plans to produce around 700,000 mt of steel products in 2011. The whole complex is expected to reach full production capacity of 2.3 million mt per year of finished steel products by 2012.

In 2011, MMK aims to increase finished steel output by 10-15 percent year-on-year. This growth will be due to the increasing demand for MMK products from major steel-consuming industries in Russia and also due to MMK Metalürji reaching full production capacity.

Tags: Russia , MMK , CIS , steelmaking , production
(sourced steelorbis)

Russia's MMK sees new mill capacity at 1.5 mln T/yr

Wed Feb 9, 2011 11:19am GMT
MOSCOW Feb 9 (Reuters) - Magnitogorsk Iron & Steel Works (MAGN.MM: Quote), Russia's third-largest steelmaker, said on Wednesday its 5,000 mm plate mill has a full order book and that its annual output is about 1.5 million tonnes.
The mill, commissioned in 2009, produced 127,000 tonnes of steel in January, up from 112,000 tonnes in December.

The new mill produces thick steel for industries such as pipe-making and shipbuilding and is part of the company's strategy to increase its value-added production.
The steelmaker, also known as MMK, is in the midst of an aggressive expansion that will see output reach 18.6 million tonnes annually by 2014.
It produced 11.4 million tonnes of crude steel last year and expects 2011 output to increase by 14 percent. (Reporting by Alfred Kueppers, sourced:reuters)

Russian steelmaker MMK bags approval under Kyoto Protocol for EAF project

Friday, 21 Jan 2011

The Russian Ministry of Economic Development has approved the Joint Implementation project for arc furnace steelmaking at Magnitogorsk Iron and Steel Works.

The project has been implemented in accordance with the rules of the Kyoto Protocol to the United Nations Framework Convention on Climate Change.

As a result Magnitogorsk Iron and Steel Works has received project investor status and is entitled to receive Emission Reduction Units as provided for by the flexible mechanisms of the Kyoto Protocol.

Joint Implementation mechanism, as defined in Article 6 of the Kyoto Protocol, gives Annex I countries the chance to invest in projects that reduce Greenhouse Gas Emissions in any other Annex I country as an alternative to reducing emissions domestically. After approval of projects by designated state authorities of such countries so called Emission Reduction Units are issued for actually achieved and verified emission reductions. Such ERUs can be sold in the international carbon market. Implementing the project will provide MMK with additional revenues that will improve the economics of the project and partly compensates for the project’s costs.

During 2004 to 2006 Magnitogorsk Iron and Steel Works conducted a major reconstruction of its smelting facilities. The modernization project involved a complete switch to continuous steel casting and the replacement of open-hearth production methodology with state of the art electric furnace steelmaking. The project has significantly increased the production capacity of Russia largest metallurgical enterprise. By replacing the outdated open-hearth furnace technology the companys capacity to produce high quality electrical steel has increased from 2 million tonnes to 4 million tonnes.

At the same time the project will reduce the emissions of CO2 one of the main greenhouse gases causing the ‘greenhouse effect’ by 7 million tonnes during 2008-2012 which is the largest reduction rate achieved in the Russian metallurgical industry. The implementation of the project is a very important event for the Russian steel industry as it has increased the company’s competitive position in the domestic and foreign markets. The project has also significantly reduced the energy consumption for steel production and lowered the emissions of pollutants.

MMK’s partner in the Joint Implementation project is Carbon Trade & Finance which will act as the buyer of all generated ERUs and provider of project development services. MMK expects to receive additional revenue of approximately EUR 70 million from the sale of ERUs in 2011-2013. The funds will be used to repay the project-related loans and to further finance the company’s modernization program up to 2013.

sourced: steelguru