MOSCOW, Jul 7 (PRIME) -- Russia’s Magnitogorsk Iron and Steel Works (MMK) expects its steel production to fall 10–15% in 2020 due to the economic decline amid the spread of coronavirus, CEO Pavel Shilyayev told business daily Vedomosti in an interview released on Tuesday.
“If production falls 10–15% this year, this will be a good result for 2020,” he said.
In 2019, MMK’s steel output decreased 1.6% to 12.46 million tonnes.
“The decline in production in May amounted to 30% of the usual planned load. Demand on the domestic market fell by 50%. Therefore, of course, part of the production was directed to the warehouse,” Shilyayev said.
The company had to redirect the maximum possible volumes of supplies for exports, he said.
“In May, exports reached 40% excluding the CIS. And taking into account the CIS markets – 50%. Thanks to this, we were able to maintain capacity utilization at 70% ... In June, the export share will remain at 30%,” he said.
MMK reduced its planned investments in 2020 to U.S. $750 million from $900 million and may revise its plans once again in June as well, Shilyayev said.
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