25 Oct 2013 07:01
25 October 2013
ММК Group1 Trading Update for Q3 and 9 months 2013
MMK Group:
Operational highlights
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
MMK Group crude steel | 2,874 | 3,079 | -7% | 9,027 | 10,068 | -10% |
MMK crude steel | 2,874 | 3,079 | -7% | 9,027 | 9,316 | -3% |
MMK Metalurji crude steel | 0 | 0 | - | 0 | 752 | - |
MMK Group steel products | 2,640 | 2,843 | -7% | 8,309 | 9,153 | -9% |
MMK steel products | 2,567 | 2,757 | -7% | 8,069 | 8,400 | -4% |
ММК-Metiz steel products2 | 138 | 147 | -6% | 419 | 380 | 10% |
ММК Metalurji steel products2 | 144 | 168 | -14% | 490 | 748 | -34% |
MMK Group HVA products | 1,280 | 1,382 | -7% | 4,016 | 3,667 | 10% |
MMK Group HVA products share | 48.5% | 48.6% | 48.3% | 40.0% | ||
Belon coal concentrate | 683 | 829 | -18% | 2,181 | 2,522 | -14% |
Iron ore | 998 | 888 | 12% | 2,757 | 3,176 | -13% |
§ MMK Group crude steel output in Q3 2013 totalled 2,874 thousand tonnes (-7% q-o-q).
§ MMK Group finished steel products output in Q3 2013 (excluding intra-group sales) totalled 2,640 thousand tonnes (-7% q-o-q). The decline was due to scheduled maintenance work on the blast furnace at the Magnitogorsk site and industrial action by workers at MMK Metalurji which brought production to a halt.
§ MMK Group High-Value-Added (HVA) steel products output in Q3 2013 fell to the level of Q2 2013 in line with overall declining production rates, but the share remained at the previous level of over 48%.
§ MMK Group High-Value-Added (HVA) steel products output in 9 months 2013 increased 10% against 9 months 2012 to 4,016 thousand tonnes.
1 - MMK Group is understood as OJSC MMK together with subsidiaries; OJSC MMK is referred to as MMK
2 - Products manufactured from MMK steel are not included in the finished products of MMK Group
Steel segment
MMK
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
Cast iron | 2,331 | 2,466 | -5% | 7,223 | 7,607 | -5% |
Crude steel | 2,874 | 3,079 | -7% | 9,027 | 9,316 | -3% |
Finished products output, of which: | 2,567 | 2,757 | -7% | 8,069 | 8,400 | -4% |
Slabs and billets | 0 | 9 | - | 9 | 47 | -81% |
Long products | 471 | 461 | 2% | 1,386 | 1,336 | 4% |
Flat hot-rolled products | 1,086 | 1,204 | -10% | 3,521 | 4,185 | -16% |
High-Value-Added (HVA) products, of which: | 1,011 | 1,084 | -7% | 3,152 | 2,832 | 11% |
Thick plate (mill 5000) | 170 | 244 | -30% | 660 | 623 | 6% |
Flat cold-rolled products | 360 | 363 | -1% | 1,097 | 1,000 | 10% |
Downstream products, of which: | 480 | 476 | 1% | 1,395 | 1,209 | 15% |
Tin plate | 34 | 41 | -16% | 110 | 110 | -1% |
Galvanised steel | 260 | 248 | 5% | 725 | 480 | 51% |
Colour-coated steel | 97 | 102 | -5% | 296 | 253 | 17% |
Band | 26 | 28 | -6% | 93 | 104 | -10% |
Formed section | 37 | 37 | 1% | 105 | 191 | -45% |
Pipes | 25 | 20 | 23% | 66 | 72 | -8% |
Shipments by market: | ||||||
Domestic market* | 2,253 | 2,398 | -6% | 6,853 | 6,433 | 7% |
Export | 315 | 359 | -12% | 1,215 | 1,967 | -38% |
Average prices, USD | ||||||
Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % | |
Average price per tonne: | 618 | 649 | -5% | 652 | 688 | -5% |
Long products | 577 | 591 | -2% | 604 | 633 | -5% |
Flat hot-rolled products | 524 | 544 | -4% | 548 | 578 | -5% |
High-Value-Added (HVA) products, of which: | 738 | 790 | -7% | 788 | 879 | -10% |
Thick plate (mill 5000) | 728 | 843 | -14% | 838 | 917 | -9% |
Flat cold-rolled products | 565 | 597 | -5% | 602 | 694 | -13% |
Downstream products, of which: | 872 | 910 | -4% | 911 | 1,012 | -10% |
Tin plate | 1,010 | 1,038 | -3% | 1,055 | 1,112 | -5% |
Galvanised steel | 805 | 833 | -3% | 845 | 991 | -15% |
Colour-coated steel | 1,131 | 1,151 | -2% | 1,149 | 1,239 | -7% |
Band | 649 | 717 | -9% | 679 | 797 | -15% |
Formed section | 823 | 873 | -6% | 877 | 922 | -5% |
Pipes | 670 | 713 | -6% | 720 | 753 | -4% |
Average price per tonne, of which: | 618 | 649 | -5% | 652 | 688 | -5% |
Domestic market* | 637 | 672 | -5% | 680 | 742 | -8% |
Export | 481 | 498 | -3% | 492 | 510 | -4% |
*- includes CIS sales
§ Finished steel products output in Q3 2013 amounted to 2,567 tonnes, 7% lower than in Q2 2013. This decline was due to the routine maintenance of No.6 blast furnace.
§ In Q3 2013 shipments of MMK's finished products to the domestic market remained at a high level thanks to the demand for steel from the construction sector. In Q3 2013 the share of domestic sales in the total volume of shipments was almost 88%.
§ For 9 months 2013 shipments of finished steel products to the domestic market increased 7% against the same period in 2012.
§ The share of HVA products in total production remained at the previously high level (over 39%)
§ In 9 months 2013 output of HVA products grew 11% on 9 months 2012.
§ Shipments of long products in Q3 2013 totalled 471 thousand tonnes, an increase of 2% q-o-q. At the same time, in 9 months 2013 sales of long products grew 4% in comparison with 9 months 2012. This increase was driven by demand for steel in the construction sector.
§ The decrease in sales of hot-rolled products in Q3 2013 q-o-q was caused by a reduction in exports which are mainly made up of commercial quality hot-rolled products.
§ Mill 5000 output in Q3 2013 fell by 74 thousand tonnes q-o-q to 170 thousand tonnes. This fall was due to completing supplies to pipe companies for the SAK-3 project, and postponements to some pipeline laying projects.
§ In total, in 9 months 2013 thick plate mill 5000 output was 6% higher than in 9 months 2012.
§ Sales volumes of galvanised steel in Q3 2013 grew by 5% q-o-q, due to the favourable situation in the construction industry throughout 2013.
§ For 9 months 2013, in comparison with 9 months 2012, sales of galvanised and colour-coated steel grew by 51% and 17% respectively.
MMK-Metiz
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
Finished products output, of which: | 138 | 147 | -6% | 419 | 380 | 10% |
Products from MMK steel | 136 | 144 | -5% | 413 | 375 | 10% |
§ Production of finished steel products at MMK-Metiz in Q3 2013 reached 138 thousand tonnes, a decrease of 6% q-o-q. This was due to a fall in demand for railway chocks.
§ Production and sales of finished steel products in 9 months 2013 grew 10% against 9 months 2012 due to overall recovery in the construction industry.
MMK Metalurji
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
Steel | 0 | 0 | - | 0 | 752 | - |
ММК Metalurji finished products, of which: | 144 | 168 | -14% | 490 | 748 | -34% |
Flat hot-rolled products | 13 | 15 | -13% | 44 | 293 | -85% |
HVA products, of which: | 131 | 152 | -14% | 445 | 455 | -2% |
Galvanised steel | 65 | 73 | -11% | 214 | 217 | -1% |
Colour-coated steel | 66 | 80 | -18% | 232 | 238 | -3% |
ММК Metalurji finished output from MMK steel | 73 | 83 | -12% | 256 | 0 | - |
§ In Q3 2013 MMK Metalurji's working production facilities were close to full capacity.
§ The fall in production volumes of finished steel products in Q3 2013 compared to the previous quarter was due to industrial action by production staff.
Mining segment
COAL
Belon
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
Coking coal | 1,177 | 1,389 | -15% | 3,688 | 4,128 | -11% |
Mined | 820 | 1,063 | -23% | 2,738 | 3,011 | -9% |
Purchased | 357 | 326 | 10% | 950 | 1,117 | -15% |
Coking coal concentrate | 683 | 829 | -18% | 2,181 | 2,522 | -14% |
§ Mined volumes of coking coal fell by 23% in Q3 2013 q-o-q due to scheduled maintenance of the coal faces in Q3 2013
§ Production of coking coal concentrate in Q3 2013 was 683 thousand tonnes, down 18% q-o-q
IRON ORE
Production, thousand tonnes | ||||||
Products | Q3 2013 | Q2 2013 | % | 9 months 2013 | 9 months 2012 | % |
Iron ore (consumed at MMK), incl.: | 998 | 888 | 12% | 2,757 | 3,176 | -13% |
MMK iron ore base at Bakal | 0 | 0 | - | 0 | 355 | - |
MMK iron ore base in Magnitogorsk | 447 | 383 | 17% | 1,263 | 1,303 | -3% |
Slag processing | 551 | 505 | 9% | 1,494 | 1,519 | -2% |
§ In-house consumption of iron ore produced by the Group in Q3 2013 grew by 12% q-o-q to 998 thousand tonnes.
§ Consumption of iron ore from the base in Magnitogorsk in Q3 2013 reached 447 thousand tonnes, an increase of 17% on Q2 2013. This was due to completion of repairs to the concentration plant in Q2.
§ Slag processing volumes in Q3 2013 grew by 9% q-o-q to 551 thousand tonnes. This increase against Q2 2013 was mainly due to the increase in volumes of slurry concentrate from slag heaps.
Outlook
In Q4 2013 the company plans to maintain production volumes of finished steel products at the level of Q3 2013
The presentation of the MMK Group's consolidated IFRS financial results for Q3 2013 is scheduled for the end of November 2013
* * *
About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2012 the company produced 13 million tonnes of crude steel and 11.9 million tonnes of commercial steel products. MMK Group had sales in 2012 of USD 9,328 million and EBITDA of USD 1,356 million
Investor Relations Department:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
Communications Department:
Polina Rudyaeva tel.: +7 (916) 810 8918 E-mail: rudyaeva.pi@mmk.ru
| Sergey Vykhukholevtel.: +7 (499) 238-26-13E-mail: vykhukholev.sv@mmk.ru
| Alexander Proskurov tel.: +7 (3519) 24-63-03 E-mail: proskurov.as@mmk.ru
|