STEEL SEGMENT RUSSIA
thousand tonnes Q1 2021 Q4 2020 % Q1 2021 Q1 2020 %
Crude steel production 3,300 3,312 - 0.4 3,300 3,022 9.2
Pig iron production 2,572 2,521 2.0 2,572 2,355 9.2
Finished products sales, 2,853 2,933 - 2.7 2,853 2,597 9.8
including:
Slabs and billets 53 0 - 53 0 -
Long products 268 297 - 9.8 268 357 - 24.7
Flat hot-rolled products 1,570 1,505 4.3 1,570 1,095 43.3
Premium products, including: 961 1,131 - 15.0 961 1,145 - 16.1
Thick plate (Mill 5000) 165 202 - 18.3 165 231 - 28.6
Flat cold-rolled products 184 226 - 18.4 184 245 - 24.7
Downstream products, including: 612 703 - 13.0 612 670 - 8.6
Tinplate 43 38 14.9 43 42 4.1
Galvanised steel 270 298 - 9.1 270 311 - 13.1
Polymer-coated steel 126 150 - 16.1 126 109 15.3
Band 35 42 - 15.2 35 32 11.4
Formed section 26 36 - 28.0 26 44 - 41.9
Pipe 12 24 - 48.4 12 13 - 3.3
Metalware 97 111 - 12.2 97 108 - 9.8
Other metal products 2 6 - 72.1 2 11 - 85.1
Share of premium products 33.7% 38.5% 33.7% 44.1%
- 2.7% Q-o-Q
sales of
finished
products
- 9.8% Q-o-Q
sales of long
products
Sales of finished steel products in Q1 2021 decreased by 2.7% q-o-q to 2,853 thousand tonnes mainly due
to the build-up of metal products inventories ahead of the construction season. The 9.8% y-o-y increase
in sales was due to the completion of modernisation of Hot-Rolling Mill 2500.
+ 4.3% Q-o-Q
sales of
hot-rolled Sales of long products in Q1 2021 were down by 9.8% q-o-q to 268 thousand tonnes due to the restocking
products ahead of the construction season. Sales declined by 24.7% y-o-y driven by the scheduled repairs to
rolling equipment and an increase in inventories ahead of the construction season.
In Q1 2021, sales of hot-rolled products grew by 4.3% q-o-q to 1,570 thousand tonnes as a result of the
- 15.0% Q-o-Q growing export sales supported by favourable situation on global markets. The 43.3% y-o-y increase in
sales was driven by the production growth at Hot-Rolling Mill 2500 after its modernisation.
sales of
premium Sales of premium products in Q1 2021 decreased by 15.0% to 961 thousand tonnes due to the restocking
products ahead of the construction season and an increased share of export sales of thick plates from Mill 5000
with longer selling periods. The share of sales of premium products in the portfolio was 33.7%. Sales
decreased by 16.1% y-o-y, reflecting the change in order mix for Mill 5000 thick plates and higher
intragroup sales of cold-rolled products amid the reconstruction of the reverse Cold-Rolling Mill 1700.
Mill 5000 sales decreased by 18.3% q-o-q to 165 thousand tonnes due to an increase in the share of
export orders with longer selling periods. The 28.6% y-o-y decrease in sales was caused by a change in
- 18.3% Q-o-Q the order mix.
sales of Mill Sales of cold-rolled products in Q1 2021 were down by 18.4% q-o-q to 184 thousand tonnes, due to an
5000 products increase in intragroup sales. The 24.7% y-o-y decrease in sales was due to an increase in intragroup
sales and the reconstruction of the reverse Cold-Rolling Mill 1700.
The increase in tinplate sales in Q1 2021 by 14.9% to 43 thousand tonnes was due to the completion of
- 18.4% Q-o-Q scheduled equipment repairs. The 4.1% y-o-y increase in tinplate sales reflects higher equipment
performance driven by the changes in order mix.
sales of
cold-rolled Sales of galvanised steel in Q1 2021 decreased by 9.1% q-o-q to 270 thousand tonnes, driven by the
products build-up of inventories in the distribution network ahead of the construction season. Sales of
galvanised steel were down by 13.1% y-o-y.
+ 14.9% Q-o-Q
Sales of coated steel in Q1 2021 decreased by 16.1% q-o-q to 126 thousand tonnes due to pre-season
sales of build-up of inventories and a more attractive pricing environment for galvanised steel. Sales were up
tinplate 15.3% y-o-y, reflecting the low 2020 base amid the spread of the pandemic.
- 9.1% Q-o-Q
sales of
galvanised
steel
- 16.1% Q-o-Q
SALES OF
POLYMER-COATED
STEEL STEEL SEGMENT TURKEY
thousand tonnes Q1 2021 Q4 2020 % Q1 2021 Q1 2020 %
Finished products sales, 196 220 - 10.9 196 167 17.0
including:
Flat hot-rolled products 3 7 - 58.9 3 4 - 31.5
Premium products, including: 193 213 - 9.3 193 163 18.2
Flat cold-rolled products - - - - - -
Downstream products, including: 193 213 - 9.3 193 163 18.2
Galvanised steel 168 163 3.5 168 132 27.4
Polymer-coated steel 25 50 - 50.8 25 31 - 20.8
Share of premium products 98.5% 96.8% 98.5% 97.5%
Intersegment sales from Steel segment Russia 145 108 34.8 145 19 648.5
- 10.9% Q-o-Q
SALES OF The sales of finished products in the Turkish steel segment in Q1 2021 decreased by 10.9% q-o-q to 196
FINISHED thousand tonnes, reflecting the shortage of semi-finished hot-rolled stock amid unscheduled repairs by
PRODUCTS key third-party contractors and challenging weather conditions in Russia and in Turkey in the first
quarter, which increased the delivery time of sea cargo.
A 17.0% y-o-y increase in sales reflects a low 2020 base amid the spread of the pandemic and lockdown
restrictions.
COAL MINING SEGMENT
thousand tonnes Q1 2021 Q4 2020 % Q1 2021 Q1 2020 %
Coking coal mining 1,282 1,246 2.9 1,282 1,238 3.6
Coking coal processing 1,356 1,404 - 3.4 1,356 1,442 - 5.9
Mined 1,177 1,208 - 2.6 1,177 1,358 - 13.3
Purchased 114 159 - 28.2 114 84 35.1
Toll 65 37 74.7 65 - -
Coking coal concentrate 815 837 - 2.6 815 814 0.2
+ 2.9% Q-o-Q
COKING COAL
PRODUCTION
Coking coal production in Q1 2021 increased by 2.9% q-o-q to 1,282 thousand tonnes. Coking coal
production decreased by 3.6% y-o-y due to the challenging mining and geological conditions at the
Chertinskaya-Koksovaya mine.
- 2.6% Q-o-Q
Coking coal concentrate production in Q1 2021 decreased by 2.6% q-o-q due to convention loading
COKING COAL restrictions and preparation of faces for re-mounting. The output of coal concentrate remained flat
CONCENTRATE year-on-year.
PRODUCTION
MMK GROUP'S
SUSTAINABILITY PERFORMANCE (ESG)
? On 21 January 2021, BSI issued a report confirming the reliability of MMK's statement on its
greenhouse gas emissions. This is the first BSI verification among Russian and other CIS companies to
HIGHLIGHTS the latest version of ISO 14064-1:2018.
? In March 2021, the ISS international rating agency changed its ESG Corporate Rating outlook for MMK
from "D+" to "C". The rating upgrade reflects the Group's continued strong performance and commitment
to UN corporate responsibility and sustainability initiatives.
Q1 2021 Q4 2020 % Q1 2021 Q1 2020 %
LTIFR 1.20 0.53 126.4 1.20 1.09 10.1
Gross air emissions, thousand tonnes 47.5 50.5 - 5.9 47.5 42.8 11.0
Specific air emissions, kg/tonne 14.4 15.2 - 5.3 14.4 14.2 1.4
+ 10.1% Y-o-Y
ltifr The LTIFR for Q1 2021 increased by 10.1% y-o-y to 1.20, reflecting the increased number of accidents on
the back of adverse weather conditions (icy conditions of roads). The Group continues to implement
initiatives to address the root causes of accidents and improve the production safety culture.
Specific air emissions in Q1 2021 increased by 1.4% y-o-y to 14.4 kg per tonne due to an increase in air
+ 1.4% Y-o-Y emissions from power facilities as a result of the colder winter period of 2021.
SPECIFIC AIR In Q4 2020, specific air emissions decreased by 5.3% q-o-q to 14.4 kg per tonne driven by the
EMISSIONS implementation of measures to decrease dust emissions.
? The favourable conditions in global markets coupled with seasonal growth in demand in Russia will
positively impact the Group's sales in Q2 2021. In May 2021, the reverse Cold-Rolling Mill 1700 is
expected to be commissioned, which, given our 100% utilisation of premium products, will positively
impact the structure of the Group's sales portfolio.
? The beginning of the construction season in Russia and positive dynamics of global prices for metal
OUTLOOK products amid the continued shortages in foreign markets will support the growth of prices for MMK
Group's metal products in Q2 2021.
? CAPEX for Q2 2021 is expected to grow q-o-q, in line with the implementation schedule for projects (MORE TO FOLLOW) Dow Jones Newswires
April 14, 2021 02:57 ET (06:57 GMT)
