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. Last Updated: 07/27/2016

MMK Boosts Steel Output

Magnitogorsk Iron & Steel Works produced 8.1 percent more crude steel and sold its products at higher prices in the first nine months of the year, the country's third-largest steelmaker said Wednesday.

Magnitogorsk, or MMK, said in a statement that crude steel output totaled 9.93 million tons in January-September. The company produced 9.10 million tons of finished products, up 8.9 percent year on year.

"Output of long products in the first nine months of 2007 has been stepped up against the same period of last year thanks to achieving design capacity at all long-product mills," MMK said.

Average sales prices for long products used in construction rose 43.3 percent year on year to $582 per ton.

MMK said it had a surplus of commercial slabs, a semifinished product from which steel sheet used in cars, roofing and household goods can be produced, because of a shortage of flat-rolling capacity.

Slab sales more than quadrupled to 588,000 tons in the first nine months of the year and prices rose 9 percent in the same comparison to an average $410 per ton.

MMK is building a 1.5-million-ton-per-year plate mill and upgrading two hot-rolling mills to boost capacity and improve the quality of its products.

"When completed, these projects will allow us to fully process all the slabs produced at MMK," the company said.

Hot-rolled steel sheet prices rose 23.4 percent in the first nine months of the year to $543 per ton and cold-rolled sheet prices rose 21 percent to $594 per ton. But third-quarter prices fell 2.8 percent and 1.8 percent, respectively, from the second quarter average.