Russian steel giant Magnitogorsk Iron and Steel Works (MMK) has announced that its Turkey-based subsidiary MMK Metalurji reported no crude steel output in the first quarter of this year, due to smelting capacities being idled in November 2012. MMK Metalurji halted operations at its electric arc furnace (EAF) and hot rolling facilities in Iskenderun due to production efficiency considerations given the economic situation in Turkey characterized by high raw material (metal scrap) costs and more expensive energy, as well as lower HRC prices, as SteelOrbis previously reported.
In the first quarter of this year, the cold rolled flat product output of MMK Metalurji totaled 16,000 mt, declining by 86.8 percent year on year, while its galvanized steel production amounted to 76,000 mt, remaining unchanged compared to the same quarter of the previous year. Despite no hot rolled steel production during the given quarter, hot rolled steel maintained its share of the sales structure of finished products in the first quarter, driven by sales of hot rolled coil from the company's warehouses. The steelmaker's color coated steel production increased by 47.7 percent year on year to 86,000 mt in the given quarter.
According to MMK' statement, the idling of smelting and hot rolling facilities and the consequent reduction in fixed costs will have a beneficial effect on the company's financial results.
