Posted on 30 Nov 2015
Russian steel producer MMK expects sales to fall 4.3 percent in 2015, its chief executive said on Friday, reflecting lower output.
MMK has said it will reduce production by 5 percent this year as cheap Chinese steel floods global markets, undermining prices and forcing producers to cut costs.
Chief Executive Pavel Shilyaev said MMK’s sales will fall to 11.1 million tonnes in 2015 from 11.6 million a year earlier.
The global steel surplus is around 700 million tonnes, he said.
Russian steelmakers have also been hit by a flagging domestic economy, which has slowed in the face of the lower oil prices and Western sanctions over the Ukraine crisis.
MMK will invest no more than $600 million in the next 10 years and expects the share of domestic sales in its revenue to rise by 8 percentage points to 84 percent, it said.
