Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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The changes in the domestic sales structure occurred due to a substantial growth in shipments of long and flat
products, thanks to the Company’s promotional efforts and growth of demand on the market. The sales of long
products increased by 15%, hot-rolled products, by 24, with the largest growth achieved in the sales of cold rolled
products: 56% compared to the level of 2006. The sales of downstream products increased by 4%. OJSC MMK has
practically exhausted its potential for increasing shipments of this type of products due to the complete utilization
of the production facilities.
thousand tons
3,500
3,000
2,500
2,000
1,500
1,000
500
0
OJSC MMK product range sold in the domestic market
Slabs and billets Long products HR products CR products Downstream
2003 2004 2005 2006 2007
The sectoral sales structure of MMK in 2007 did not undergo any significant changes. The largest steel
quantities were shipped to to the enterprises of the steel sector, namely, pipe, metalware and metal-working
plants, which in 2007 accounted for more than one third of all the sales. The highest growth was achieved in sales
to automotive and metal-working plants, as well as to the construction industry.