Steel Sales Volumes Likely to Fall in Q2 CY20 Due to Pandemic - MMK

MMK Group expects steel sales volume to decline in Q2 CY'20 amid weaker business activity due to the unfavourable epidemiologic situation in Russia and the world.

Also, MMK's production volumes are expected to be low in the second quarter as there will be scheduled maintenance shutdown for equipment repairs, company said in a recent release.

In addition to it, the company expects market uncertainty to likely put significant pressure on global prices for metal products in Q2 CY'20.

CAPEX in Q2 is expected to be higher than in Q1 due to the completion of the reconstruction of hot-rolling Mill 2500.

MMK's steel output and sales volumes during the first quarter of CY'20 was down by 1.6% and 1.3% respectively, on Q-o-Q basis.

The company reported 1.6% Q-o-Q drop in total steel output, registering 3.02 MnT in Q1 CY'20 due to maintenance work at converter facilities and scheduled reconstruction of hot rolled Mill 2500. And on yearly basis, steel output declined by 2.7% Y-o-Y due to lower steel demand amid scheduled maintenance work at rolling facilities.