PJSC Magnitogorsk Iron & Steel Works (“MMK”, or the “Group”) (MOEX: MAGN; LSE: MMK) announces its Trading Update for Q3 and 9M 2022.

KEY INDICATORS FOR Q3 2022 VS Q2 2022

• Pig iron output increased by 13.1% quarter-on-quarter (q-o-q) to 2,336 thousand tonnes reflecting the partial recovery of demand for metal products on the Russian market and completion of blast furnace overhauls.

• Steel output declined by 3.3% q-o-q to 2,796 thousand tonnes mainly due to decrease in steel output at the Turkish division and market headwinds globally.

• MMK Group’s sales of metal products were up by 17.4% q-o-q to 2,773 thousand tonnes, driven by recovery of business environment in Russia and clearance of inventories. Sales of premium products were also up by 11.0% to 1,146 thousand tonnes, with their share in the sales portfolio standing at 41.3%.

• Coal concentrate production totalled 877 thousand tonnes, down 5.0% q-o-q, due to lower equipment performance amid changes in the composition of the coal charge.

KEY INDICATORS FOR 9M 2022 VS 9M 2021

• Pig iron output decreased by 15.2% year-on-year (y-o-y) to 6,649 thousand tonnes due to lengthy overhauls at blast furnace operations and deteriorating market conditions.

• Steel output were down by 11.7% y-o-y to 8,859 thousand tonnes due to a slowdown in business activity on the key sales markets and existing export constraints.

• MMK Group’s sales of metal products contracted by 10.8% y-o-y to 8,018 thousand tonnes, reflecting existing restrictions on export markets, lengthy equipment overhauls of rolling equipment at the beginning of the year and a significant slowdown in business activity globally. Sales of premium products fell by 6.1% to 3,528 thousand tonnes, with their share the sales portfolio standing at 44.0%.

• Production of coal concentrate increased by 3.3% y-o-y to 2,642 thousand tonnes, driven by MMK’s stronger demand for third-party supplies of coking coal grades.

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