PJSC Magnitogorsk Iron & Steel Works (“MMK”, or the “Group”) (MOEX: MAGN) announces its Trading Update for Q2 and H1 2023.

KEY INDICATORS FOR Q2 2023 VS Q1 2023

• Pig iron output increased by 9.6% quarter-on-quarter (q-o-q) to 2,569 thousand tonnes due to the completion of overhauls of blast furnace facilities.

• Steel output grew by 13.0% q-o-q to 3,457 thousand tonnes reflecting steady demand on the Russian and neighbouring countries’ markets as well as the partial recovery in business activity in Turkey in Q2 2023.

• Group sales of metal products totalled 3,065 thousand tonnes, an increase of 11.0% q-o-q amid favourable market conditions on the Russian and neighbouring countries’ markets and higher sales of the Turkish division due to partial recovery of demand on the Turkish market after February 2023 earthquake. Sales of premium products were up by 13.5% to 1,332 thousand tonnes due to seasonally higher demand from metal processing and construction industries on cold-rolled, galvanised and colour-coated steel. The share of premium products in the sales portfolio increased to 43.4%.

• Coal concentrate production totalled 943 thousand tonnes, up by 10.0% q-o-q reflecting higher demand on coking coal form MMK as well as an increase in toll processed coals.

KEY INDICATORS FOR H1 2023 VS H1 2022

• Pig iron output grew by 14.0% year-on-year (y-o-y) to 4,914 thousand tonnes due to lower blast furnace overhauls duration compared to the previous year.

• Steel output increased by 7.5% y-o-y to 6,515 thousand tonnes, reflecting favourable conditions on the Russian market in Q2 2023. Steel output at the Magnitogorsk facilities increased by 17.8% to 6,380 thousand tonnes, while steel production at the Turkish asset decreased by 79.1% to 135 thousand tonnes reflecting a decline in business activity in Turkey amid macroeconomic headwinds and the earthquake in February 2023.

• Group sales of metal products totalled 5 826 thousand tonnes, up by 11.1% y-o-y due to favourable conditions on the Russian and neighbouring countries markets. Sales of premium products increased by 5.1% y-o-y to 2 504 thousand tonnes driven by an increase in sales of cold-rolled, galvanized and polymer-coated steel amid higher demand from metal processing and construction industries.

• Production of coal concentrate increased by 2.0% y-o-y to 1,800 thousand tonnes.
  

Please follow the link to view the full press-release.