Pipe industry showed largest increase in purchases of MMK steel products
Among all the partners of Magnitogorsk Iron and Steel Works (MMK), representatives of the pipe industry have shown the largest increase in their purchases of MMK products compared to 2021, with sales increasing by more than 30%. This was reported by Alexander Kadoshnikov, head of the internal group that oversees MMK’s work with the pipe industry, in his presentation at the 14th national conference entitled "Steel Pipes: Production and Regional Sales" in Novosibirsk.
In his report, Mr Kadoshnikov gave an overview of the Russian steel products market and MMK’s performance on the market of rolled steel sheets for the pipe industry. Overall, 2023 was a successful year for Russian steelmakers: despite a reduction in exports, the production volumes of domestic steelmakers increased due to a sharp rise in domestic consumption. In 2023, domestic metal consumption in Russia increased by approximately 12.7%. MMK expects this positive dynamic to continue in 2024.
MMK produces more than 17% of all rolled steel products supplied to the Russian market and holds a leading position on the Russian market of premium steel products, particularly in the supply of steel for the automotive industry, Mr Kadoshnikov said. The Company is also a leading supplier of galvanized and painted rolled products and is among the top three manufacturers of metalware products.
The pipe industry has traditionally been one of the most important customers in MMK's sales structure, accounting for approximately one third of the Company's supplies to the Russian market. It is the pipe industry that showed the most significant growth in purchases of MMK steel products, increasing by more than 30% in the period since 2021, with the potential for further growth. MMK products are used to manufacture all varieties of welded pipes, including large-diameter pipes for trunk pipelines. The high quality of MMK's rolled products makes it possible to produce pipes for use in harsh climatic zones, as well as in extreme and high-pressure operating conditions.
In 2023, MMK's specialists mastered the following types of rolled products for pipe enterprises as part of the Company’s product strategy aimed delivering innovative products for the pipe industry:
- 21.6 mm-thick low-alloy hot-rolled sheet of strength class K60;
- 43.0-55.0 mm-thick hot-rolled sheet steel featuring high strength and impact toughness at the temperature of minus 43° C, intended for manufacturing structural supports for facilities at the Petropavlovsk-Kamchatsky International Airport;
- 10 mm-thick hot-rolled steel coils of corrosion-resistant steel under the brand 03KhGB;
- hot-rolled coils of strength classes K55 and N80, with thicknesses from 12 mm and above.
In addition, MMK has successfully mastered the production of K60 strength class sheet steel with dimensions of 17x3117x12150 and 25.8x4333x12150 mm, designed to manufacture pipes for use in active tectonic fault zones. The Company has also mastered the production of steel under the brand 1 3G1 s-u in coils with dimensions of 8.2x2250 mm and with increased cold resistance.
MMK’s customer-oriented approach is also expected to strengthen its market position, as the Company works to expand the geography and the quality of its MMK Trading House network, boost online sales and further develop its logistics systems. The Company also devotes time to searching for new technological solutions for industries that have high growth potential in the short term, and is working to implement a Customer Relationship Management (CRM) system.
The 14th national conference "Steel Pipes: Production and Regional Sales” took place on May 23-24 in Novosibirsk. Participants included approximately 150 managers and specialists from pipe manufacturers, steel companies that supply raw materials and metal trading companies that distribute steel pipes, as well as equipment suppliers, consumers of pipe products, representatives of the state and of public associations, analysts and experts.