🕐26.04.12 - 08:54 Uhr
MMK TRADING UPDATE FOR Q1 2012
[cid:image002.jpg@01CD23AB.04AF4EB0]
Magnitogorsk Iron and Steel Works
26 April 2012
MMK Group1 trading update for Q1 2012
MMK Group operating highlights
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
MMK Group crude steel
3,417
3,109
10%
3,417
3,092
11%
MMK steel
3,117
2,826
10%
3,117
3,092
1%
MMK Metalurji steel
300
283
6%
300
-
MMK Group finished steel products
3,021
2,859
6%
3,021
2,737
10%
MMK finished steel products
2,766
2,623
5%
2,766
2,707
2%
MMK-Metiz finished steel products2
110
103
7%
110
123
-11%
MMK-Metalurji finished steel products
253
233
9%
253
28
x9
HVA products,
MMK Group (volume)
1,199
1,028
17%
1,199
1,080
11%
HVA products, MMK Group (% of total production)
40%
36%
4 pp
40%
39%
1 pp
Belon coal concentrate
776
882
-12%
776
766
1%
Iron ore
1,047
1,145
-9%
1,047
1,277
-18%
* MMK Groups total crude steel output in Q1 2012 was 3,417 thousand tons (+10% q-o-q)
* MMK Groups total steel products output in Q1 2012 was 3,021 thousand tons (+6% q-o-q)
* MMKs crude steel output in Q1 2012 was 3,117 thousand tons (+10% q-o-q)
* MMKs finished steel products output in Q1 2012 was 2,766 thousand tons (+5% q-o-q)
* MMK-Metizs finished steel products output in Q1 2012 was 110 thousand tons (+7% q-o-q)
* MMK-Metalurjis total finished steel products output in Q1 2012 was 253 thousand tons (+9% q-o-q)
* MMK Groups total output of high value-added (HVA) products increased 17% q-o-q in Q1 2012 to 1,199 thousand tons.
* Production of coking coal concentrate in Q1 2012 was 776 thousand tons (-12% q-o-q).
* Consumption of own iron ore in Q1 2012 was 1,047 thousand tons (-9% q-o-q).
Steel segment
MMK
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Cast iron
2,479
2,277
9%
2,479
2,471
0.3%
Crude steel
3,117
2,826
10%
3,117
3,092
1%
Finished products, of which:
2,766
2,623
5%
2,766
2,707
2%
Slabs and billets
45
102
-56%
45
45
1%
Long products
401
372
8%
401
335
20%
Flat hot-rolled products
1,380
1,343
3%
1,380
1,396
-1%
HVA products, of which:
939
807
16%
939
931
1%
Thick plate (mill 5000)
248
171
45%
248
307
-19%
Flat cold-rolled products
316
303
4%
316
272
16%
Downstream products, of which:
374
333
13%
374
352
6%
Tin plate
37
29
29%
37
40
-6%
Galvanised steel
159
140
13%
159
144
10%
Colour-coated steel
65
70
-8%
65
57
14%
Band
30
27
11%
30
24
25%
Formed section
60
56
7%
60
69
-13%
Pipes
23
10
132%
23
18
29%
Shipments by market
Domestic*
2,033
1,673
22%
2,033
1,898
7%
Export
732
950
-23%
732
809
-9%
Average prices, finished products (USD)
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Average price per ton:
Slabs and billets
496
483
3%
496
536
-7%
Long products
647
654
-1%
647
687
-6%
Flat hot-rolled products
599
610
-2%
599
661
-9%
HVA products, of which:
894
905
-1%
894
945
-5%
Thick plate (mill 5000)
939
888
6%
939
1,082
-13%
Flat cold-rolled products
726
761
-5%
726
743
-2%
Downstream products, of which:
1,007
1,043
-3%
1,007
982
3%
Tin plate
1,093
1,079
1%
1,093
1,085
1%
Galvanised steel
984
1,022
-4%
984
939
5%
Colour-coated steel
1,225
1,229
-0.3%
1,225
1,172
5%
Band
867
930
-7%
867
974
-11%
Formed section
949
934
2%
949
895
6%
Pipes
752
789
-5%
752
827
-9%
Average price per ton, of which:
705
702
0.4%
705
760
-7%
Domestic*
772
783
-1%
772
828
-7%
Export
517
558
-7%
517
601
-14%
*including CIS
* Finished steel products output in Q1 2012 was 2,766 thousand tons (+5% q-o-q).
Sales to the higher priority domestic market increased by 22%, and the share in total shipments increased by six percentage points to 73% in Q1 2012.
* Sales of HVA products in Q1 2012 grew by 16%, due to higher sales volumes to the domestic market, which traditionally requires more complex products than export markets.
* Production of finished slab in Q1 2012 declined by 56% q-o-q to 45 thousand tons.
* Output of long products in Q1 2012 grew by 8% q-o-q, due to a recovery in demand from the construction sector, and additional output from MMK-Metiz, which uses long products from MMK as a semi-finished rolled product.
Shipments to MMK-Metiz in Q1 2012 accounted for 24% of the total in Q1 2012, up from 17% in Q4 2011.
* Production of flat hot-rolled products in Q1 2012 was 1,380 thousand tons, 3% higher q-o-q.
* Total production of thick plate (mill 5000) in Q1 2012 was 248 thousand tons, up 45% q-o-q.
This was due to a significant increase in orders from pipe manufacturers for rolled products for large-diameter pipes.
Demand for complex tube steels increased significantly, leading to the average price for plate growing faster (+6% q-o-q) than the average price for finished steel products.
* Tin plate output in Q1 2012 grew by 29% q-o-q due to a seasonal increase in domestic and CIS demand.
* Output of galvanised steel in Q1 2012 increased by 13% q-o-q, due to a recovery of business activity on the Russian market and restocking by traders ahead of the new season.
* Favourable market conditions throughout Q1 2012 led to higher margins on sales of galvanised steel compared with colour-coated steel.
This led to a reduction in sales of colour-coated steel in Q1 2012 of 8% q-o-q.
* Although average export prices in Q1 2012 declined 7% q-o-q, increased sales to the domestic market - which offers a premium and where demand for crude steel is recovering at a faster pace - led to an increase in the average price of finished steel products from MMK in Q1 2012 to $705 per ton ($702 in Q4 2011).
MMK-Metiz
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Finished products, of which:
110
103
7%
110
123
-11%
MMK output
108
100
9%
108
121
-11%
* MMK-Metizs finished steel products output in Q1 2012 was 110 thousand tons (+7% q-o-q)
* This was due to a some revival in business activity in major consumer sectors for MMK-Metizs products (construction and metallurgy).
Metalurji
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Crude steel
300
283
6%
300
0
n/a
MMK-Metalurji finished products output, of which:
253
233
9%
253
28
x9
Flat hot-rolled products
119
115
3%
119
2
x60
HVA products, of which:
135
118
14%
135
26
x5
Galvanised steel
76
77
-1%
76
16
x5
Colour-coated steel
58
40
46%
58
9
6
* Crude steel output in Q1 2012 was 300 thousand tons, up 6% q-o-q.
* Total finished steel products output at MMKs Turkish operations in Q1 2012 was 253 thousand tons (+9% q-o-q)
* Production of colour-coated steel in Q1 2012 grew 46% q-o-q due to a seasonal revival of the construction sector.
* Output of galvanised steel in Q1 2012 declined by an insignificant 1% q-o-q, due to increased shipments of colour-coated steel.
Mining segment
COAL
Belon
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Coking coal
1,292
1,474
-12%
1,292
1,216
6%
Mined
998
1,168
-15%
998
1,033
-3%
Purchased
293
306
-4%
293
183
60%
Coking coal concentrate
776
882
-12%
776
766
1%
* The 12% reduction in mined output of coking coal in Q1 2012 q-o-q was due to scheduled replacement of walls in March 2012.
Replacement of walls will continue throughout 2Q 2012.
* Production of coking coal concentrate in Q1 2012 was 776 thousand tons, down 12% q-o-q due to a general reduction in coal output in Q1 2012.
* Concentrate shipments to MMK in Q1 2012 remained at the same level as in Q4 2011.
* Output of coking coal concentrate in 2012 is expected to remain at the same level as in 2011, despite the scheduled replacement of walls.
IRON ORE
Production, thousand tons
Production
Q1 12
Q4 11
%
Q1 12
Q1 11
%
Iron ore (used at MMK), of which:
1,047
1,145
-9%
1,047
1,277
-18%
Bakal
125
137
-9%
125
346
-63%
Magnitogorsk
467
580
-19%
467
395
18%
Slag processing
455
428
6%
455
536
-15%
* since end-Q2 2011, shipments from the Sosnovsky deposit have been included in shipments from the Magnitogorsk iron-ore base.
* Consumption of captive iron ore in Q1 2012 declined by 9% q-o-q to 1,047 thousand tons.
* MMKs consumption of iron ore from Bakal in Q1 2012 was 125 thousand tons, down 9% q-o-q, due to substitution of iron ore from Bakal by iron containing fraction from processed slag.
* Consumption of iron ore from Magnitogorsk in Q1 2012 was 467 thousand tons, down 19% q-o-q.
This was due to a planned reduction in mining of higher-quality ore and lower production of concentrate from lower-quality ore from Sosnovsky.
* Slag processing volumes in Q1 2012 increased by 4% q-o-q to 443 thousand tons.
Slag consumption in Q1 2012 declined by 17% y-o-y due primarily to a number of measures aimed at reducing expenditure on major raw materials, and an increase in sinter-cake quality.
Update on MMK Groups key investment projects.
Mill 2000
MMK Group plans to commission the second phase of the cold-rolled products facility - the continuous hot galvanising unit, continuous annealing unit and the inspection unit - which will make it the first Russian steel-maker to launch production of high-strength cold-rolled and galvanised products.
The company is continuing to finalise the details of contracts to supply mill 2000 output to carmakers.
Since the start of 2012, mill 2000 has produced about 100 thousand tons of cold-rolled steel a month.
The mill is currently being used to produce galvanised and colour-coated steel at existing capacities.
The high quality of the input steel will increase the competitiveness of the product.
Outlook
MMK expects to increase sales of finished steel products in Q2 2012 q-o-q due to growth of the Russian economy in 2012 and a seasonal increase in domestic demand for steel.
The company expects further growth in production volumes and sales at MMK-Metalurji in Q2 2012 as the facility reaches full production capacity.
MMK will publish its consolidated IFRS financial results for Q1 2012 in June 2012.
* * *
About MMK
MMK is one of the worlds largest steel producers and a leading Russian metals company.
The companys operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel.
MMK turns out a broad range of steel products with a predominant share of higher value added products.
In 2011 the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products.
MMK Group had sales in 2011 of USD 9.306 billion and EBITDA of USD 1.336 billion.
Investor relations
Andrey Serov,
tel.
+7 (3519) 24-52-97
email:
Communications department:
Elena Evstigneeva,
tel.
+7 (985) 763-4443
email:
Kirill Golubkov
tel.: +7 (916) 675-30-81
email:
Alexander Proskurov
tel.
+7 (3519) 24-63-03
email:
[cid:image002.jpg@01CD23AB.04AF4EB0]
26 2012 .
1 1- 2012
:
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
3 417
3 109
10%
3 417
3 092
11%
3 117
2 826
10%
3 117
3 092
1%
Metalurji
300
283
6%
300
-
3 021
2 859
6%
3 021
2 737
10%
2 766
2 623
5%
2 766
2 707
2%
-2
110
103
7%
110
123
-11%
Metalurji
253
233
9%
253
28
9
1 199
1 028
17%
1 199
1 080
11%
40%
36%
4 ..
40%
39%
1 ..
()
776
882
-12%
776
766
1%
1 047
1 145
-9%
1 047
1 277
-18%
* 1 .
2012 .
3 417 .
(+10% 4 .
2011 .).
* 1 .
2012 .
3 021 .
(+6% 4 .
2011 .).
* 1 .
2012 .
3 117 .
(+10% 4 .
2011 .).
* 1 .
2012 .
2 766 .
(+5% 4 .
2011 .).
* - 1 .
2012 .
110 .
(+7% 4 .
2011 .).
* -Metalurji 1 .
2012 .
253 .
, 9% 4 .
2011 .
* (HVA) 1 .
2012 .
17% 4 .
2011 .
1 199 .
.
* 1 .
2012 .
776 .
(-12% 4 .
2011 .).
* 1 .
2012 .
1 047 .
(-9% 4 .
2011 .)
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
2 479
2 277
9%
2 479
2 471
0,3%
3 117
2 826
10%
3 117
3 092
1%
, ..:
2 766
2 623
5%
2 766
2 707
2%
45
102
-56%
45
45
1%
401
372
8%
401
335
20%
/
1 380
1 343
3%
1 380
1 396
-1%
.
, ..:
939
807
16%
939
931
1%
( 5000)
248
171
45%
248
307
-19%
/
316
303
4%
316
272
16%
, ..:
374
333
13%
374
352
6%
37
29
29%
37
40
-6%
159
140
13%
159
144
10%
65
70
-8%
65
57
14%
30
27
11%
30
24
25%
60
56
7%
60
69
-13%
23
10
132%
23
18
29%
:
*
2 033
1 673
22%
2 033
1 898
7%
732
950
-23%
732
809
-9%
, USD
1 .
12
4 .
11
%
1 .
12
1 .
11
%
1 :
496
483
3%
496
536
-7%
647
654
-1%
647
687
-6%
/
599
610
-2%
599
661
-9%
.
, ..
894
905
-1%
894
945
-5%
( 5000)
939
888
6%
939
1 082
-13%
/
726
761
-5%
726
743
-2%
, ..:
1 007
1 043
-3%
1 007
982
3%
1 093
1 079
1%
1 093
1 085
1%
984
1 022
-4%
984
939
5%
1 225
1 229
-0,3%
1 225
1 172
5%
867
930
-7%
867
974
-11%
949
934
2%
949
895
6%
752
789
-5%
752
827
-9%
1 , ..
705
702
0,4%
705
760
-7%
*
772
783
-1%
772
828
-7%
517
558
-7%
517
601
-14%
*-
* 1 .
2012 .
2 766 .
, 4 .
2011 .
5%.
22%, 1 .
2012 .
6 ..
73%.
* 1 .
2012 .
16% , .
* 1 .
2012 .
56% 4 .
2011 .
45 .
.
* 1 .
2012 .
4 .
2011 .
8% .
- -, .
1 .
2012 .
- 17% 4 .
2011 .
24% 1 .
2012 .
* / 1 .
2011 .
1 380 .
, 3% 4 .
2011 .
* 5000 1 .
2012 .
45% 4 .
2011 .
248 .
.
.
, (+6% 4 .
2011 .) .
* 1 .
2012 .
29% 4 .
2011 .
.
* 1 .
2012 .
4 .
2011 .
13% .
* 1 .
2012 .
.
1 .
2012 .
8% 4 .
2011 .
* 1 .
2012 .
4 .
2011 .
7%, , , 1 .
2012 .
$705 4 .
2011 .
($702 1 ).
-
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
, ..:
110
103
7%
110
123
-11%
108
100
9%
108
121
-11%
* - 4 .
2012 .
4 .
2011 .
7% 110 .
.
* , ( ).
Metalurji
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
300
283
6%
300
0
n/a
Metalurji ..
253
233
9%
253
28
9
/
119
115
3%
119
2
60
.
, ..:
135
118
14%
135
26
5
76
77
-1%
76
16
5
58
40
46%
58
9
6
* 1 .
2012 .
300 .
, 6% 4 .
2011 .
* 1 .
2012 .
253 .
, 9% 4 .
2011 .
* 1 .
2012 .
4 .
2011 .
46% .
* 1 .
2012 .
1% 4 .
2011 .
.
* (2,3 ) 2 .
2012 .
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
1 292
1 474
-12%
1 292
1 216
6%
998
1 168
-15%
998
1 033
-3%
293
306
-4%
293
183
60%
776
882
-12%
776
766
1%
* (-12%) 1 .
2012 .
4 .
2011 .
2012 .
2 .
2012 .
* 1 .
2012 .
776 .
.
12% 4 .
2011 .
1 .
2012 .
* 1 .
2012 .
.
* 2012 ., , 2011 .
, .
1 .
12
4 .
11
%
1 .
12
1 .
11
%
( ), ..:
1 047
1 145
-9%
1 047
1 277
-18%
*
125
137
-9%
125
346
-63%
467
580
-19%
467
395
18%
455
428
6%
455
536
-15%
*- 2 .
2011 .
* 1 .
2012 .
9% 4 .
2011 .
1 047 .
.
* 1 .
2012 .
125 .
, 9% 4 .
2011 .
.
* 1 .
2012 .
467 .
, 4 .
2011 .
19%.
, .
* 1 .
2012 .
4% 4 .
2011 .
443 .
.
1 .
2012 .
1 .
2011 .
17% , , .
2000
2012 .
- , .
- .
.
2012 .
2000 100 .
.
.
.
, 2012 ., 2 .
2012 .
1 .
2012 .
2 .
2012 .
Metalurji .
1 .
2012 .
2012 .
* * *
MMK
< > .
, .
.
2011 .
12,2 11,2 .
2011 .
$9,306 , EBITDA - $1,336 .
:
.: +7 (3519) 24-52-97
e-mail:
:
.: +7 (985) 763-44-43
e-mail:
.: +7 (916) 675-30-81
e-mail:
.: +7 (3519) 24-63-03
e-mail: