DAX®13.298,96+0,35%TecDAX®3.117,66+1,05%Dow Jones 3030.218,26+0,83%Nasdaq 10012.528,48+0,49%
finanztreff.de

PJSC Magnitogorsk Iron and Steel Works: MMK Group -3-

| Quelle: Dow Jones Newsw... | Lesedauer etwa 17 min. | Text vorlesen Stop Pause Fortsetzen
DJ PJSC Magnitogorsk Iron and Steel Works: MMK Group Trading Update for Q3 and 9M 2020



PJSC Magnitogorsk Iron and Steel Works (MMK)
PJSC Magnitogorsk Iron and Steel Works: MMK Group Trading Update for Q3 and
9M 2020

13-Oct-2020 / 08:53 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

MMK Group trading update for q3 and PJSC Magnitogorsk Iron &
9M 2020 Steel Works ("MMK", or the
"Group") (MICEX-RTS: MAGN;
LSE: MMK), one of the
world's largest steel
producers, is pleased to
announce its Trading Update
for Q3 and 9M 2020.

13 October 2020

Magnitogorsk, Russia

HIGHLIGHTS

? Pig iron output increased by 13.9%
quarter-on-quarter (q-o-q) to 2,379 thousand
Q3 2020 tonnes, driven by the recovery in steel demand and
the completion of a major overhaul of Blast Furnace
No. 2.

VS Q2 2020

? Steel output was up 22.2% q-o-q at 2,882 thousand
tonnes due to business activity recovery and the
launch of Hot-Rolling Mill 2500 in July after
scheduled reconstruction completed in Q2.

? MMK Group's total sales of finished products
amounted to 2,742 thousand tonnes, up 23.3% q-o-q.

? MMK Group's sales of HVA products totalled 1,341
thousand tonnes, up 16.5% q-o-q. The share of HVA
products in total sales amounted to 48.9%. The
increase in sales of HVA products in Q3 was driven
by business activity recovery in Russia and the
seasonal rise in demand for rolled products used in
construction.

? MMK Coal's coal concentrate production totalled
721 thousand tonnes, up 4.9% q-o-q due to higher
yields for coking coal and stronger demand for
concentrate at MMK.

HIGHLIGHTS

? Pig iron output decreased by 7.9% year-on-year
(y-o-y) to 6,823 thousand tonnes due to a longer
9M 2020 period of scheduled maintenance at blast furnace
facilities amid the coronavirus pandemic.

VS 9M 2019

? Steel output in 9M 2020 was down 12.0% y-o-y to
8,263 thousand tonnes, due to a lower consumption
of steel during the scheduled reconstruction of
Hot-Rolling Mill 2500 and a slowdown in business
activity in Q2 2020 due to the pandemic outbreak.

? MMK Group's total sales of finished products fell
by 9.7% y-o-y to 7,710 thousand tonnes.

? HVA product sales dropped by 9.1% y-o-y to 3,800
thousand tonnes. The share of HVA products in total
sales decreased marginally to 49.3%.

? Coal concentrate output in 9M 2020 amounted to
2,222 thousand tonnes, up by 17.4% y-o-y, due to
the completion of a beneficiation plant upgrade,
which took place throughout 2019.

MARKET OVERVIEW Global steel products market: Driven by
investment in infrastructure, China's economic
recovery gave rise to high domestic demand and
prices for rolled steel. Global prices for flat
products and rebars returned to pre-pandemic
levels in Q3. The rising global prices supported
Turkey, which recorded a considerable increase
in prices for flat products from the Q2 lows.
The US and Europe showed a surge in prices in
September: the shutdown of steelmaking
capacities resulted in a supply gap in the
rolled steel market during a slight recovery in
demand in late Q3.

Russian steel products market: During Q3,
Russian steelmakers took the lead in pricing on
the domestic market for rolled products. The key
price drivers in the Russian steel market in Q3
2020 included rising global prices, rouble
depreciation, high feedstock costs and pent-up
demand for steel products.

Global iron ore market: As in 2019, iron ore
prices peaked in Q3, driven by high steel output
rates in China. Brazil's iron ore exports
started to rebound from the Q1 and Q2 lows, but
for the most part of Q3, China's iron ore port
inventories were shrinking, causing a feverish
demand from Chinese plants and pushing prices
up. In September, Chinese demand for rolled
steel and iron ore slowed down, sending iron ore
prices down.

Russian iron ore market: Supply slightly
outpaces demand as Russian iron ore producers
maintain high levels of capacity utilisation. In
Q3, exports to China reached their highest level
in recent years, with sales to Europe declining
and demand in the Russian market trending
higher. Base prices in Russia are following
Chinese indices adjusted for changes in the
USD/RUB rate, with discounts offered to domestic
consumers for the greater part of 2020 remaining
sufficiently stable overall.

Global coking coal market: In Q2 and Q3,
commodity exporters were challenged by a sharp
drop in steelmaking capacity utilisation rates
in the developed economies and India. China's
imports were also limited by annual coal import
quotas. During that period, spot prices did not
exceed USD 105-110 per tonne but soared to USD
135-140 per tonne in September driven by growing
prices for steel products and recovering demand
outside China.

Russian coking coal market: Russia has long been
a buyer's market, consistently putting downward
pressure on prices since mid-2019, reaching
their lows in Q3 2020. A surge in global spot
prices and a much stronger dollar have helped
Russian coal companies to recover ground
starting from Q4.

Russian metal scrap market: During 2020, scrap
prices in Russia were extremely volatile as
scrap collection and demand from steelmakers
were largely unpredictable. In Q3, Russian scrap
prices were on a steady uptrend following the
lead of global and Russian steel prices but hit
their seasonal peak by the start of Q4.

MMK GROUP'S

CONSOLIDATED RESULTS

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

thousand tonnes

Crude steel 2,882 2,358 22.2 8,263 9,392 -12.0
production
Pig iron 2,379 2,089 13.9 6,823 7,409 -7.9
production
Coal concentrate 721 687 4.9 2,222 1,893 17.4
production
Iron ore 811 787 3.0 2,255 2,091 7.9
production
Finished product 2,742 2,223 23.3 7,710 8,535 -9.7
sales,
including:
Semi-finished 0 20 - 20 0 -
products
Long products 349 272 28.4 977 1,039 -6.0
Flat hot-rolled 1,052 781 34.7 2,913 3,314 -12.1
products
HVA products, 1,341 1,151 16.5 3,800 4,181 -9.1
including:
Thick plate 195 213 -8.5 639 824 -22.4
(Mill 5000)
Flat cold-rolled 226 192 17.9 663 746 -11.1
products
Downstream 919 745 23.3 2,498 2,611 -4.4
products,
including:
Tin plate 44 45 -0.4 131 111 18.0
Galvanised steel 454 377 20.4 1,275 1,387 -8.1
Polymer-coated 220 157 40.6 517 516 0.2
steel
Band 29 28 6.4 89 87 2.2
Formed section 20 23 -12.6 87 128 -31.9
Pipe 28 18 52.6 59 41 46.4
Metalware 109 90 20.3 307 299 2.6
Other metal 14 8 83.0 33 43 -24.4
products
Share of HVA 48.9% 51.8% 49.3% 49.0%
products

CONSOLIDATED PRICES

FOR METAL PRODUCTS

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

USD/tonne

Average price per 535 522 2.5 551 644 -14.4
tonne:
Semi-finished - 255 - 255 0 -
products
Long products 453 439 3.2 465 539 -13.7
Flat hot-rolled 439 414 6.0 462 551 -16.2
products
HVA products, 633 618 2.4 643 745 -13.7
including:
Thick plate (Mill 554 536 3.4 596 735 -18.9
5000)
Flat cold-rolled 517 535 -3.4 553 634 -8.0
products
Downstream 678 664 2.1 678 779 -12.8
products,
including:
Tin plate 696 702 -0.9 722 813 -11.2
Galvanised steel 679 630 7.8 655 740 -11.5
Polymer-coated 760 790 -3.8 786 914 -14.0
steel
Band 567 593 -4.4 610 698 -12.6
Formed section 571 600 -4.8 675 794 -15.0
Pipe 494 514 -3.9 514 595 -13.6
Metalware 593 637 6.9 629 752 -16.4

(MORE TO FOLLOW) Dow Jones Newswires

October 13, 2020 02:54 ET ( 06:54 GMT)

DJ PJSC Magnitogorsk Iron and Steel Works: MMK Group -2-


Other metal 713 668 6.7 695 812 -14.4
products

+2.5% Q-o-Q The average selling price in US dollars
grew by 2.5% q-o-q in Q3 2020 to USD 535
per tonne. Prices were bolstered by
business activity recovery after the
AVERAGE SELLING PRICE removal of lockdown restrictions and an
increase in global hot-rolled prices. The
14.4% y-o-y fall in the average selling
price in 9M 2020 was caused by a drop in
global steel prices.

MMK GROUP'S PERFORMANCE

ACROSS CORE SEGMENTS

STEEL SEGMENT RUSSIA

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

thousand tonnes

Crude steel 2,882 2,358 22.2 8,263 9,392 -13.2
production
Pig iron 2,379 2,089 13.9 6,823 7,409 -7.9
production
Finished product 2,617 2,122 23.3 7,336 8,261 -11.2
sales,
including:
Semi-finished 0 20 - 20 0 -
products
Long products 349 272 28.4 977 1,039 -6.0
Flat hot-rolled 1,112 831 33.8 3,038 3,587 -15.3
products
HVA products, 1,156 1,000 15.7 3,301 3,635 -9.2
including:
Thick plate 195 213 -8.5 639 824 -22.5
(Mill 5000)
Flat cold-rolled 237 192 23.3 673 743 -9.4
products
Downstream 725 594 21.9 1,989 2,068 -3.8
products,
including:
Tin plate 44 45 -0.4 131 111 18.0
Galvanised steel 321 265 21.1 897 952 -5.8
Polymer-coated 159 118 35.2 386 408 -5.4
steel
Band 29 28 6.4 89 87 2.3
Formed section 20 23 -12.6 87 128 -32.0
Pipe 28 18 52.6 59 41 43.9
Metalware 109 90 20.3 307 299 2.7
Other metal 14 8 82.7 32 43 -25.6
products
Share of HVA 44.2% 47.1% 45.0% 44.0%
products
+23.3% Q-o-Q Sales of finished products in Q3
2020 grew by 23.3% q-o-q to 2,617
thousand tonnes due to a recovery
in business activity and the
SALES OF FINISHED launch of Hot-Rolling Mill 2500 in
July. The decrease in product
sales in 9M 2020 by 11.2% y-o-y to
7,336 thousand tonnes was driven
PRODUCTS by longer scheduled maintenance
and worsening market environment
on the back of the coronavirus
pandemic.

The 28.4% q-o-q rise in long
+28.4% Q-o-Q product sales in Q3 2020 to 349
thousand tonnes was primarily
driven by construction project
restarts and seasonality.
SALES OF LONG PRODUCTS Year-on-year, sales were down 6.0%
to 977 thousand tonnes in 9M 2020,
reflecting the slowdown in
business activity.

The volume of sales of hot-rolled
products in Q3 2020 increased by
33.8% q-o-q to 1,112 thousand
tonnes. This was mostly due to the
launch of Hot-Rolling Mill 2500 in
+33.8% Q-o-Q July after its scheduled
reconstruction. Year-on-year,
sales of hot-rolled products
dropped by 15.3% to 3,038 thousand
SALES OF HOT-ROLLED tonnes in 9M 2020, affected by
longer scheduled maintenance.

PRODUCTS
In Q3 2020, sales of HVA products
were up by 15.7% to 1,156 thousand
tonnes, and their share of total
sales reached 44.2%. Year-on-year,
sales of HVA products were down
9.2% to 3,301 thousand tonnes in
9M 2020, while their share of
+15.7% Q-o-Q total sales grew to 45.0%. The
major drivers of the change were a
decline in sales of Mill 5000
thick plate and the slowdown in
SALES OF HVA PRODUCTS business activity.

The 8.5% decrease in sales volumes
of Mill 5000 products q-o-q to 195
thousand tonnes was due to a more
complex product mix. The 22.5%
-8.5% Q-o-Q y-o-y decline in Mill 5000 thick
plate sales to 639 thousand tonnes
in 9M 2020 was mainly due to
changes in order backlog amid a
SALES OF MILL 5000 100% capacity utilisation rate.

PRODUCTS Sales of cold-rolled products in
Q3 2020 were up 23.3% q-o-q to 237
thousand tonnes, impacted by
higher demand from automotive,
+23.3% Q-o-Q metalworking and rerolling
manufacturers. Year-on-year, sales
were down 9.4% to 673 thousand
tonnes in 9M 2020, due to the
SALES OF COLD-ROLLED major slowdown in business
activity along with an accident at
the reverse Cold-Rolling Mill 1700
in February 2020.
PRODUCTS

In Q3 2020, tin plate sales
decreased by 0.4% to 44 thousand
-0.4% Q-o-Q tonnes, while the capacity
utilisation rate remains at 100%.
The 18.0% y-o-y growth in tin
plate sales in 9M 2020 to 131
SALES OF TIN PLATE thousand tonnes reflects a higher
demand from the food industry.

+21.1% Q-o-Q The increase in the sales volumes
of galvanised steel in Q3 2020 by
21.1% q-o-q to 321 thousand tonnes
was due to a recovery in business
SALES OF GALVANISED STEEL activity and higher demand for
rolled products used in
construction. Year-on-year, sales
declined by 5.8% to 897 thousand
tonnes in 9M 2020.

In Q3 2020, sales of
+35.2% Q-o-Q polymer-coated steel grew by 35.2%
q-o-q to 159 thousand tonnes,
driven by a seasonal growth in
demand. Year-on-year, sales of
SALES OF POLYMER-COATED STEEL polymer-coated steel declined by
5.4% in 9M 2020 to 386 thousand
tonnes, reflecting the difficult
market environment.

STEEL SEGMENT TURKEY

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

thousand tonnes

Finished product 200 154 29.4 521 561 -7.1
sales,
including:
Flat hot-rolled 5 3 61.2 12 14 -9.2
products
HVA products, 194 151 28.7 509 547 -6.9
including:
Flat cold-rolled - - - - 4 -
products
Downstream 194 151 28.7 509 543 -6.4
products,
including:
Galvanised steel 133 112 18.8 378 435 -13.1
Polymer-coated 61 39 57.1 131 108 20.7
steel
Share of HVA 97.4% 97.9% 97.6% 97.6%
products
Intersegment 32 53 -39.6 104 288 -63.9
sales from Steel
segment Russia
+29.4% Q-o-Q The Turkish steel segment's sales of
finished products in Q3 2020 were up
29.4% q-o-q at 200 thousand tonnes,
due to the combined effects of the
SALES OF FINISHED PRODUCTS removal of lockdown restrictions,
pent-up demand and business activity
recovery in Turkey. In Q3 2020, the
Turkish steel segment increased
polymer-coated steel sales by 57.1%
to 61 thousand tonnes to benefit from
the higher margins offered by this
product in the current market
environment.

The 7.1% y-o-y decline in 9M 2020
sales to 521 thousand tonnes was
mainly due to the spread of the
pandemic in Turkey and globally. At
the same time, polymer-coated steel
sales grew by 20.7% y-o-y to 131
thousand tonnes in 9M 2020,
reflecting the Turkish steel
segment's strategy to boost sales of
high-margin products.

COAL MINING SEGMENT

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

thousand tonnes


(MORE TO FOLLOW) Dow Jones Newswires

October 13, 2020 02:54 ET ( 06:54 GMT)


Coking coal 965 909 6.1 3,108 3,483 -10.8
mining
Coking coal 1,242 1,202 3.3 3,886 3,429 13.4
processing
Mined 1,149 1,061 8.3 3,568 3,171 12.5
Purchased 93 141 -33.7 318 244 30.6
Toll - - - - 14 -
Coking coal 721 687 4.9 2,222 1,893 17.4
concentrate
+6.1% Q-o-Q Coking coal production in Q3 2020
amounted to 965 thousand tonnes, an
increase of 6.1% q-o-q, on the back
of the completion of face transfer
COKING COAL PRODUCTION operations. Year-on-year, coking
coal production was down 10.8% to
3,108 thousand tonnes in 9M 2020,
due to the challenging geological
conditions at the
Chertinskaya-Koksovaya mine and the
suspension of mine operations due to
an accident in September.

Coal concentrate production in Q3
+4.9% Q-o-Q 2020 grew by 4.9% q-o-q to 721
thousand tonnes, driven by higher
yields for coking coal and stronger
demand for concentrate. The 17.4%
COAL CONCENTRATE PRODUCTION y-o-y growth in coal concentrate
output to 2,222 thousand tonnes in
9M 2020 was driven by the completion
of a beneficiation plant upgrade,
which took place throughout 2019.

MMK GROUP'S

SUSTAINABILITY PERFORMANCE (ESG)

? In Q3, MMK Group established the ESG department.
The department will be responsible for all
HIGHLIGHTS stakeholder communications as well as the
development and execution of the Group's
sustainability strategy.

? On 8 July 2020, MMK published a corporate
Sustainability Report prepared under the Global
Reporting Initiative (GRI) standards. The
publication of this Report reflects MMK's
commitment to its mission and core principles of
sustainable development, including the achievement
of the UN's Sustainable Development Goals.

? Following the reconstruction, Blast Furnace No. 2
with advanced dust exhausting units at cast and
stock houses, was put into operation in June, which
will significantly reduce future dust emissions.

? In February 2020, an appraisal audit was
successfully conducted for compliance with the
international standard ISO 450 01:20 18.

Q3 2020 Q2 2020 % 9M 2020 9M 2019 %

LTIFR 0.62 0.29 113.8 0.67 0.93 -28.0
Gross air 45.4 38.7 17.3 122.8 147.7 -16.9
emissions,
thousand tonnes
Specific air 17.68 17.83 -0.8 16.86 17.68 -4.6
emissions,
kg/tonne
-28.0% Y-O-Y In 9M 2020,
lost-time-injury
frequency rate
(LTIFR) decreased
Ltifr year-on-year by
28.0% to 0.67,
reflecting a
decrease in the
number of accidents
as part of the
implementation of
measures to improve
-4.6% Y-O-Y the production
safety culture and
eliminate the root
causes of
specific air accidents.
emissions

Specific air
emissions in 9M
2020 were down 4.6%
y-o-y to 16.86
kg/tonne, driven by
the construction
and launch of
Sinter Plant No. 5
in mid-2019, which
boasts an advanced
gas-cleaning
system, coupled
with the subsequent
decommissioning of
Sinter Plant No. 4.

In Q3 2020,
specific air
emissions decreased
by 0.8% q-o-q to
17.68 kg/tonne on
the back of higher
levels of metal
product output.

? The COVID-19 response centre
established at MMK and led by the
COVID-19 RESPONSE CEO has continued to operate. In
line with all the measures launched
in spring, office employees work
remotely, the number of personnel
at production sites is reduced, and
shifts are separated by pauses.

? The Group continuously monitors
the situation and takes all
necessary steps to prevent the
spread and reduce the risk of
coronavirus infection.

OUTLOOK

? The pent-up demand from the construction industry
along with the government economic stimulus packages
are expected to bolster sales in Q4 2020.

? Higher utilisation of Hot-Rolling Mill 2500's
capacity in Q4 2020 will additionally support MMK
Group sales.

? The Group will continue its strategy to maximise
utilisation of high-margin production units.

? Amid the stabilisation of hot-rolled coil prices in
the Black Sea region, domestic prices in Q4 are
expected to remain flat from the previous quarter.

? CAPEX for Q4 2020 is expected to grow q-o-q, in line
with the implementation schedule for projects pursued
as part of the Group's strategy.

? Operational excellence initiatives under the
Evolution Business System will further boost Group
performance in Q4 2020.

ABOUT MMK Subscribe to our official MMK
channel on Telegram [1] to be
the first to know about key MMK
news.
MMK is one of the world's
largest steel producers and a
leading Russian metals
company. The Group's
operations in Russia include a
large steel-producing unit
encompassing the entire
production chain, from the
preparation of iron ore to
downstream processing of
rolled steel. MMK turns out a
broad range of steel products,
with a predominant share of
high-value-added products. In
2019, MMK produced 12.5 mln
tonnes of crude steel and 11.3
mln tonnes of commercial steel
products.

??? is an industry leader in
terms of production costs and
margins. Group revenue in 2019
totalled USD 7,566 mln, with
an EBITDA of USD 1,797 mln.
MMK boasts the industry's
lowest debt burden. Net
debt/EBITDA ratio was -0.13?
at the end of 2019. The
Group's investment-grade
rating is confirmed by the
leading global rating agencies
Fitch, Moody's and S&P.

MMK's ordinary shares are
traded on the Moscow Exchange,
while its depositary receipts
are traded on the London Stock
Exchange. Free float amounts
to 15.7%.

KEY UPCOMING EVENTS IN 2020
INVESTOR RELATIONS
DEPARTMENT

FINANCIAL CALENDAR [2]

Veronika Kryachko
+7 915 380 6266
kryachko.vs@mmk.ru
22 October Q3 and 9M 2020 IFRS financials
29 October- Moscow Exchange Forum
3 November
9-11 November GS, 12th CEEMEA 1x1 Conference,
virtual
9-13 Rennaissance Capital, 25th anniversary
November EM & FM conference, virtual
ESG DEPARTMENT 23-24 Non-deal roadshow, virtual
November

Yaroslava Vrubel
+7 982 282 9682
vrubel.ys@mmk.ru

COMMUNICATIONS
DEPARTMENT

Dmitry Kuchumov
+7 985 219 2874
kuchumov.do@mmk.ru

Oleg Egorov
+7 903 971 8837
egorov.oa@mmk.ru

ISIN: US5591892048
Category Code: TST
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 85776
EQS News ID: 1140429

End of Announcement EQS News Service


1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=018e8dda52d5b81f4b4093f7460d9f36&application_id=1140429&site_id=vwd&application_name=news
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f19ee4d8455febdae47734f3baadfb59&application_id=1140429&site_id=vwd&application_name=news


(END) Dow Jones Newswires

October 13, 2020 02:54 ET ( 06:54 GMT)
Werbung

Das könnte Sie auch interessieren

News-Suche

Suchbegriff:

Aktuelle Videos

HSBC Trading TV

Werbung

Trading-Tipp

Börsen & Märkte

US-Marktüberblick

zur Mediathek
Werbung

Werbung
Diese Seite empfehlenschliessen
Interessant, oder?
Teilen Sie diese Seite auf Facebook oder Twitter
Wenn Sie auf die Teilen-Buttons klicken und sich bei den Betreibern einloggen, werden Daten an den jeweiligen Betreiber übermittelt. Bitte beachten Sie die Datenschutzerklärung.
Aktuelle Umfrageschliessen
Wie, glauben Sie, wird der DAX am Ende dieser Woche - KW 50 - stehen?
Jetzt abstimmen!
Alle Umfragen ansehen