MMK increases supplies to Russian market 18% year-on-year
In 2023, MMK’s supplies to the Russian market rose by 18%, according to Vladislav Sak, Regional Sales Group Leader for MMK, speaking at the 17th all-Russian conference “Regional Metal Trading in Russia”, which is taking place in Sochi.
In his report, Mr Sak assessed the current situation in the metal consumption market, noting that 2023 was quite successful for Russian steelmakers overall. Despite a decline in exports, the country produced 75.8 million tonnes of steel during the year, up 5.6% from 2022. The increase was driven by higher domestic consumption, which rose by 12%. At the same time, every industry sector saw increased demand, with the most significant growth rates in the automotive and construction sectors.
Guided by its strategy, MMK has been systematically increasing its sales to the Russian market. In 2023, the Russian market accounted for 83% of MMK’s total sales of rolled stock. The Company is a leading supplier of flat products, which make up the bulk of its production and sales. About 70% of all shipments to the Russian market are sent to the Ural region, Siberia and the Volga region.
According to Mr Sak, supplies of metal products for the construction sector and for the production of welded pipes – which together make up about two thirds of MMK’s sales to the Russian market – have historically accounted for a major part of MMK’s sector-based sales breakdown.
In discussing trends in the Russian market for metal products, including the metal trading segment, Mr Sak noted that producers are moving towards consolidation and development of their own sales networks. Another trend is the increasing percentage of sales taking place under long-term contracts.
When it comes to sales, MMK’s main focus is on improving its customer-oriented approach. This includes expanding the Company’s sales geography and improving the operations of MMK Trading House’s sales network, ramping up online sales, developing its logistics system and introducing a CRM (customer relationship management) system. In addition, MMK attaches great importance to the search for new technological solutions for industries with high growth potential in the near future.