WOOD Flash – MMK: 1Q20 trading update – neutral on volumes and prices, weak outlook
MMK published its 1Q20 trading update today (14 April). Consolidated steel sales volumes were down 1.3% qoq and yoy, but the share of high value-added sales rose 1.1ppts, to 47.7% qoq, despite the fire at the CRC mill during the quarter, which we see as a positive result. The average realised steel price also rose 2.4% qoq, vs. the 5.5% qoq fall reported by Severstal earlier this morning. We would have expected a rise, so we see this as broadly neutral for MMK, although it now appears to be a good result relative to Severstal’s. We believe MMK’s greater domestic focus means that reported sales prices should lag price indices less than companies with a higher proportion of export sales, such as Severstal, so MMK’s sales reflect less volumes sold at the weak 4Q19 price. This and the improvement in the HVA share should explain the relative disparity in the price changes qoq, in our view.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.