Profit of Russia's largest steel mill plummets by 88.8%

MMK, the largest metallurgical plant in Russia, reported a sharp drop in profits in the first half of 2025, almost nine times. About it writes The Moscow Times.

This significant drop in the company's profit was the result of a decline in business activity in Russia amid high interest rates.

In the second quarter, the company's profit decreased by 21.1% year-on-year to RUB 2.5 billion ($31 million). For the first half of the year, the company's profit decreased by 88.8% year-on-year to RUB 5.6 billion ($71 million).

MMK's revenues in the second quarter amounted to RUB 155.1 billion ($1.95 billion), down 2.1% quarter-on-quarter. Overall, the company's revenue decreased by 25% to RUB 313.5 billion ($3.95 billion) over the six months.

The company predicts that in the third quarter, demand for the metal will remain weak due to the high key rate of the Russian Central Bank, which is holding back economic activity.

Steel consumption in Russia fell by 6% in 2024. In 2025, according to industry forecasts, it will decrease by another 10%.

In June, for the first time in three years, the Bank of Russia cut its key policy rate by one percentage point to 20%.

• In May, President Volodymyr Zelenskyy enacted the decision of the National Security and Defense Council on the application of sanctions against Russia's largest metallurgical plant and Novatek Group.