MMK supplies Russian market with record annual volume of coated steel
Magnitogorsk Iron and Steel Works Group (MMK Group) supplied more than 1.7 million tonnes of coated steel to the Russian market in 2023 – the highest annual amount in the Company’s history – including 1.2 million tonnes of hot-dip galvanised steel and 0.5 million tonnes of painted steel. The domestic market accounted for 91% of the Company’s total order book.
Ivan Radyukevich, MMK’s Russia Sales Director, announced these figures in his remarks at the 19th International Conference “Galvanised and Painted Steel: Production and Consumption Trends”, taking place in Moscow.
According to Mr Radyukevich, 2023 was a fairly successful year for Russian steelmakers. Despite a decline in exports, production of coated steel in Russia rose thanks to a considerable increase in domestic consumption, which was up 19% from the previous year.
MMK is focusing in particular on rolled stock with premium coatings, which accounted for a record 16% of its total supplies of galvanised and painted steel last year. This high-potential premium product line includes steel with decorative coatings as well as steel with corrugated polymer coatings.
MMK is also a major producer of specialised steel products that include automotive sheet and galvanised rolled products made of structural steel grades for construction purposes with a high yield strength, the latter of which are widely used in warehouse construction (for manufacturing racks) and for the production of lightweight, thin-walled steel structures.
Sales of specialised and premium products to the Russian market increased by more than 100 thousand tonnes in 2023, enabling MMK to retain its position as a key supplier for the automotive industry in Russia and the CIS. The Company is currently focused on further developing its import substitution efforts and increasing localisation.
Another promising niche for the Company is the production of steel products with high-quality, zinc-rich coatings (ZN450–ZN600), which provide a high level of corrosion protection.
MMK Group sees the development of premium painted products as another promising area, according to Mr Radyukevich. Notably, MMK-Lysvensky Metallurgical Plant is developing a line of branded steel products with decorative SteelArt coatings. MMK Group is Russia’s largest supplier of such products and currently manufactures steel products with 40 decorative coatings, up from 12 in 2022. The Company is also developing sales of steel products with a corrugated surface and has products in 12 different colours currently available.
In addition, the Company is exploring the possibility of producing polymer-coated rolled products for PCM panels for manufacturers of refrigeration equipment. These products currently have no domestic counterparts and must be imported from non-CIS countries.