Maxi-Group cuts steel output due to scrap undersupply

One of the NSMMZ’s EAFs located in Revda operated with interruptions in October because of scrap undersupplies attributed to the lack of working capital.
Electric steel production at NSMMZ is represented by two EAFs with total capacity of 2.2mtpy. According to updates, NSMMZ’s October steel product output dropped by 15-20% m-o-m to around 155,000 tonnes due to the lack of scrap shipments.
In November, the producer plans to retain the output at the last month’s level. Thus, NSMMZ is expected to consume some 130,000-150,000 tonnes of scrap in November, against 200,000 tonnes in September. Scrap supply is unlikely to recover in the near term, as Uralvtorchermet, the largest supplier of the material to NSMMZ, reduced its shipments significantly over the lack of working funds.

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