MMK Group, one of Russia's leading steel producers, has experienced substantial production challenges in the third quarter of 2024, with its operational results revealing significant declines across key metrics. The company's crude steel production witnessed a sharp decrease of 26.6% quarter-on-quarter, reaching 2.48 million metric tons, primarily due to extensive blast furnace maintenance and diminishing local sales triggered by escalating interest rates.
The company's pig iron production performance also showed notable weakness in the third quarter, dropping by 10.9% compared to the previous quarter to reach 2.36 million metric tons. This decline was largely attributed to the commencement of major repair works at several blast furnaces, reflecting the company's commitment to maintaining its production infrastructure despite short-term output losses.
Steel product sales for MMK Group in the third quarter totaled 2.48 million metric tons, marking an 18.7% decrease from the previous quarter. This significant reduction in sales volume was driven by a combination of factors, including the ongoing repair program and a noticeable slowdown in business activity, exacerbated by rising borrowing costs in the market.
Looking at the broader nine-month performance, MMK's operational results showed concerning trends across all major production categories. Crude steel output for the January-September period reached 8.83 million metric tons, representing a 10.6% decline compared to the same period in the previous year. This reduction reflects the broader challenges facing the steel industry, including decreased steel demand and subdued business activity.
The company's pig iron production for the first nine months of the year totaled 7.36 million metric tons, showing a more modest decline of 2.2% compared to the same period in 2023. This relative stability in pig iron production, despite the ongoing blast furnace repairs, demonstrates MMK's efforts to maintain operational continuity while managing necessary maintenance work.
Steel product sales for the nine-month period amounted to 8.26 million metric tons, recording a 7.1% decrease compared to the corresponding period in 2023. This decline can be attributed to several factors, including major repairs to rolling equipment at the year's start and the persistent slowdown in business activity throughout the period.
