MMK net profit under RAS increased by 170% to RUR 27.406 bn in 2009

Magnitogorsk Iron and Steel Works (MMK) has retained the leadership in Russia among steelmakers with 17% market share in 2009. MMK sales under RAS amounted to RUR 137.317 bn in 2009. MMK net profit under Russian Accounting Standards ( RAS) increased by 170% to RUR 27.406 bn in 2009. According to MMK press-service, the results reflect MMK (parent company) operations only and may vary significantly from the consolidated financial results under IAS.

Crude steel output amounted to 2.6 mln tons in Q4 2009. Finished steel products output amounted to 2.3 mln tons which is 11% lower compared to Q3 2009. Decreased volumes are accounted for by weakening demand for construction steel products because of the seasonality factor.

MMK average steel price (in RUR) grew by 6% in Q4 q-o-q. This growth is particularly driven by increased plate production at Mill 5000 in Q4 - up by 3.5 times to 130 thousand tons. Domestic price premium at HRC stood at RUR 2.240/ton in Q4.MMK domestic shipments share grew from 54% to 57% q-o-q, to account for 65% of proceeds.