The Republic of Turkey is currently the key consumer of Russian flat
products in the Middle East and North Africa region, and MMK Group's
position in the Turkish market has been positively affected by the
launch of hot-rolled steel production at MMK Metalurji.
Igor Sapozhnikov, lead analyst in MMK’s
Strategic Development Department, spoke about this at the 10th
MENA Billet & Flats conference held in Istanbul on 5 November.
Due to COVID-19-related restrictions, MMK's representative attended
the conference via video link.
"MENA Billet & Flats" is a platform
which unites participants in the Middle East and Northern Africa
(MENA) region's steel products markets. At the conference, Igor
Sapozhnikov gave a brief overview of the Russian steel market, spoke
about flat steel exports from Russia, and also highlighted MMK's
prospects for export development: although the Group is primarily
focused on the Russian domestic market, sales to foreign markets are
also important – in terms of utilising all production capacities
and maintaining flexibility in the sales structure.
Turkey is currently the key importer of rolled
steel from Russia in the MENA region: in 2020, Russian manufacturers
shipped more than 2.1 million tonnes of flat steel to Turkish
consumers, which exceeds the total volume of domestic rolled steel
shipped to all other countries in the region. This situation is due
to Turkey's high demand for steel: on the one hand, its economy has
been growing in recent years and is in constant need of rolled steel;
on the other hand, Turkey, due to its advantageous geographical
position, is actively exporting rolled steel to Europe, North Africa
and the Middle East.
Turkey plays an important role for MMK Group as
well: in 2021, the Group resumed hot-rolled steel production at its
Turkish asset in Iskenderun, MMK Metalurji, by launching an electric
steelmaking shop (EAF) with a casting and rolling module at the site.
MMK estimates that this year the Turkish asset will produce up to 260
thousand tonnes of hot-rolled steel, about half of which will be sold
on the Turkish domestic market. And in 2022, the EAF should reach its
full design capacity.
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