Home / Press Releases / In 2020, MMK sold over 7.4 million tonnes of steel products on the Russian market

In 2020, MMK sold over 7.4 million tonnes of steel products on the Russian market

Press Releases
According to him, participants in the metal products market in 2020 were forced to work in an environment of unusually high uncertainty and volatility. Due to restrictive measures in the second quarter, the market sank by 19% compared to 2019, but returned to its previous values ​​in the third quarter, and at the end of the year experienced a new period of growth in demand and prices. Thus, on the whole, at the end of the year, the overall decrease in metal consumption in the Russian Federation was less than expected and amounted to 3.2%. The main factors of growth in the second half of the year were deferred demand, the effect of state support measures, an increase in costs within the framework of the implementation of national projects, the intensification of housing construction and a low level of stocks.

In 2020, PJSC MMK sold 7.4 million tons of metal products to the Russian market. The share of sales to metal trading companies was about 30%. About half of this volume of production was distributed to the warehouses of metal trading companies located in "home" regions (the market of the Urals, the Volga region, Siberia and the Far East). The most popular products were hot-rolled steel and steel grades, which accounted for more than 60% of sales (34% and 29%, respectively).

About 40% of MMK's total sales to the metal trading industry and metal service centers are sold through its own sales network - OOO MMK Trading House, which is an authorized representative of the plant in all regions of Russia and the Republic of Kazakhstan. At present, TH MMK has 32 separate subdivisions in Russia (which makes it possible to ensure the sale of products to all leading industrial centers), as well as five subdivisions in the Republic of Kazakhstan.

In 2020, MMK Trading House showed shipment dynamics similar to general market trends - a decline in the second quarter and an increase in the second half of the year. In general, the increase in sales in relation to 2019 amounted to 11% (the same amount was an increase in the average order size), while the growth in shipments to the construction industry enterprises due to government support measures amounted to 17%, and sales to transport engineering enterprises showed an 18% growth.

In addition, Dmitry Cherepanov, Deputy Director for Sales at OOO MMK Trading House, spoke about the company's development of customer focus, which MMK regards as one of the key elements in increasing its competitiveness. One of the steps in this direction is the corporate marketplace currently being developed by MMK as part of its digitalization strategy for selling products of the Group and partners in the Russian market. The new service will have a number of advantages and capabilities:

∙ Access to the end consumer;

∙ Purchase products directly on the online platform;

∙ Receive information on orders at any time of the day;

∙ The possibility of implementing small-scale orders and orders with a large set of different commodity items;

∙ Services for the delivery of products and lending;

∙ Simple and clear procedures: from placing an order to resolving issues related to product quality.

The marketplace will increase the demand for the products of MMK Group companies, increase sales efficiency and customer satisfaction.

XIV All-Russian Conference “Regional Metal Trade Russia ”takes place in Sochi on February 19 and 20, 2021. The event was organized by the Metal Supply and Sales magazine with the support of the Metal-Expo exhibition and the Russian Union of Suppliers of Metal Products. Conference participants - managers and specialists of metal trading and metallurgical companies, service metal centers, suppliers of equipment for metal processing and SMC, consumer companies of metallurgical products, employees of commercial services, supply and sales departments, marketing departments. As part of the business program of the conference, participants will analyze the experience of leading metal trading companies in difficult economic conditions, as well as determine the main factors of pricing in the market in 2021.

Information and Public Relations Department of PJSC MMK

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