MMK receives unexpected advantages due to crisis and competitors
Edited by Rhod Mackenzie / 2014-03-05 08:28:14
Metals and mining Russia Ukraine Magnitogorsk metallurgic plant MMK Novolipetsk Steel NLMK Severstal Russia Metals and Mining Ukraine Metals and Mining Steel
In the near future, the vertically-integrated steel-smelting companies in Russia and the Ukraine will be supported by their own mining of iron ore, the rating agency Moody’s Investors Service reports.
In connection with the ongoing demand for iron ore raw materials from China, it is expected that the iron ore mining by low-cost divisions of Russian companies NLMK of Vladimir Lisin and Severstal of Alexei Mordashov, as well as the Ukrainian Metinvest of Rinat Akhmetov, will generate a significant share of their operating profit in 2014, senior analyst and vice president of Moody’s, Denis Perevezentsev notes. But increase in the iron ore mining can lead to decrease of its price and this means maintenance of price risks, the agency informs.
