LONDON, Nov 15 (PRIME) -- Russia’s Magnitogorsk Iron and Steel Works (MMK) expects its steel product output growth at 2–3% in 2020, Director for Economy Andrei Yeryomin told reporters on Friday during an investor day.
He said that production can decrease in January–June due to seasonal factors and repairs on the hot rolling mill.
Yeryomin also said that MMK can improve the outlook for output in October–December 2019 to a 4.5% decline from earlier expected 6% on the back of steel price recovery on export markets.
“There is a possibility that we can improve this figure by the year end: a reduction by 4.5–5.0% instead of 6%,” the official said.
Demand for metal products in Russia can grow 5% in 2019 and 1.5–2.0% in 2020, he said, adding that the construction and pipeline industries contributed to the rise, as well as the car, railcar and machinery industries.
Global demand can grow 1.3–1.5% in 2021 and 2022.
The average export price is estimated at U.S. $400 per tonne at the start of 2020, and on the Russian market there will be a $90 per tonne premium.
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