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

7
Overview of the Iron Ore and
Coal Markets in Russia
Steelmaking is one of the largest consumers of raw materials and energy in the national economy. The main
raw materials are iron ore and coal.
The analysis of the Russian iron ore market shows that there is no shortage of iron ore.
Russian Iron Ore Market in 200 -2007, m tons*
Description 200 г. 2007 г.
Deviation
2007/200
Pig iron production 51,7 51,3 -0,8%
Production of iron ore materials 97,3 99,3 2,0%
Export of iron ore materials 22,6 24,1 6,6%
Import of iron ore materials 10,6 12,3 16,0%
Domestic market requirement for
iron ore materials
Balance in the Russian iron ore
market
* - as per data of ОJSC Rudprom.
86,1 85,4 2,1%
-0,8 2,1
The analysis of the Russian coal market shows that there is a slight shortage of coal.
The 2007 output of coal concentrate is estimated at the level of 48.8 million tons, which, given the expected
export of 10.9 million tones, allows to put the deficit of the product on the market at 1.3 million tons. In 2007
the shortage of coking coal concentrate on the Russian market was further aggravated by increased export coke
deliveries: in the first half of 2007 the export of coke from the Russian Federation almost tripled compared to the
same period of 2006.