Page 152 - RusRPTJan21

delay currently being discussed is four months, with fines potentially being levied for December 2020 and January-March 2021. Previously, Enel Russia noted that it expected the delay to be a ‘few months’ and that it would complete construction by the end of the year (but that the need to finalise the paperwork suggested commissioning would be moved into 2021).
9.2.11 ​Metallurgy & mining corporate news
● Steel
Russian metals major ​MMK​ (Magnitogorsk Iron and Steel Works) could hold an SPO ​and has an optimistic outlook on the domestic steel market in 2021, the company's management said in a conference call. As reported by bne IntelliNews,​ in the second half of 2020 MMK and other metals majors such Severstal and NLMK posted strong operational results, ​were re-rated by the analysts​, and jumped among the ​best-paying dividend names​. MMK reiterated its dividend policy, while the company’s main shareholder Viktor Rashnikov said he is ready to increase the company’s free float when he is satisfied with the market capitalisation. "The potential for a short-lived 6-7% accelerated book-building (ABB) discount, following an SPO, is a slight short-term negative," BCS Global Markets commented on December 9. However, upside risk in steel prices should offset the risks in the longer term, BCS GM analysts wrote, remaining long-term positive on MMK and seeing a potential 20-30% return with a Buy recommendation on company's shares. MMK's management has an optimistic view on the domestic steel market in 2021, expecting consumption to grow by 5.9% y/y (after 6% decline in 2020) and domestic steel premium to potentially restore by February-March.
Magnitogorsk Iron and Steel Works​ (MMK) held a video call with its leadership team​ on December 7. The event included a look at the main steel market trends and MMK’s strategic priorities and goals up to 2025.
Russian and international markets outlook – MMK has an optimistic view on the domestic steel market in 2021, expecting consumption to grow by 5.9% y/y and domestic steel premium to potentially restore by February-March
o Global consumption of rolled steel products is expected to rise 4% y/y in 2021
o Russian steel consumption is expected to rise by 5.9% y/y in 2021 to 39mt, after falling by 6.1% y/y in 2020
o MMK is working at 100% capacity utilization as of beg-4Q20, with 90% capacity utilization observed in September
o The domestic steel market premium may restore by February-March
152 ​RUSSIA Country Report​ January 2021 www.intellinews.com