MMK.L Regulatory News (MMK)

12 Jul 2007 13:14

OJSC Magnitogorsk Iron &Steel Works12 July 2007 July 12, 2007 Magnitogorsk Iron & Steel Works (MMK) today announces its production results forthe 6 months of 2007. The information is presented for MMK parent company only. 1. Production Production volumes of MMK for H1 2007 and H1 2006 H1 2006 H1 2007 change---------------------------- ------------ ----------- ---------- thou tons thou tons thou tons---------------------------- ------------ ----------- ----------Pig Iron 4920,2 4651,8 -268,4Crude steel 5921,8 6475,8 553,8Finished products output, including: 5379,2 5950,7 572Billet 2,4 266,3 264Long products 771,3 934,8 164Flat hot-rolled products 2958,9 3259,1 300Flat cold-rolled products 854,9 757,9 -97Downstream productsTin plate 155,0 125,2 -30Galvanized steel 223,6 207,9 -16Galvanized colour-coated steel 75,3 90,8 16Band 173,5 167,8 -6Formed section 92,9 102,2 9Pipes 39,8 38,2 -2MKZ band 31,7 0,5 -31 Increase of electric steel output lead to increase of commercial billetproduction in the H1 2007 by 264 thousand tons. At present MMK realizes severalprojects, including construction of Plate Mill 5000 with production capacity of1.5 mln tons p.a., revamping of hot-rolling Mill 2000 (which will improve thequality of products, expand products range and increase capacity). Commissioningof these facilities will enable MMK to process the whole production volume ofbillets. Besides, due to all long products mills reaching their full operation capacityin H1 2007, MMK increased output of long products by 164 thousand tons. 2. Average prices The prices are indicative and do not consider either steel grade and qualitycharacteristics or sales markets, Average prices calculation is based ondivision of revenue by volume. Average steel prices for H1 2007 and H1 2006, $/ton Products H1 2006 H1 2007 change----------------------------- ------------ ----------- ---------- $ / ton----------------------------- ------------ ----------- ----------Billet 334 390 56Long products 382 563 181Flat hot-rolled products 416 535 119Flat cold-rolled products 464 590 126Downstream productsTin plate 876 838 -38Galvanized steel 787 935 149Galvanized colour-coated steel 930 1211 281Band 537 656 119Formed section 582 748 166Pipes 528 739 211Average price 456 579 123----------------------------- ------------ ----------- ---------- Contacts: Press serviceElena AzovtsevaTel.: +7 3519 24 90 82Fax: +7 3519 24 80 24E-mail: azovtseva@mmk.ru Investor relationsEvgeny KovtunovTel.: +7 3519 24 93 55E-mail: kovtunov@mmk.ru This information is provided by RNS The company news service from the London Stock Exchange