According to local media and sources from the market, Russian steelmaker NLMK Group has finally sold its long steel products business, which includes its Ural-based subsidiaries, namely NLMK Ural, NLMK Metalware, and assets of NLMK Vtorchermet, and NLMK Kaluga. The new owner is IMH, one of the major suppliers of pig iron from Russia, which also has an EAF-based plant called Tula Steel.
Though officially there has been no confirmation either from NLMK or IMH, according to the market sources the deal was finalized early last week. NLMK has been trying to sell its longs business since 2021, and previously Novostal-M (owner of Abinskiy Steel Works) considered to be the most probable buyer with even some prepayment done. NLMK will focus on its integrated steel facilities and its flat steel business, where costs of production and its sales network are better.
The total crude steel capacity of the EAFs sold under this deal is 3.7 million mt per year, according to SteelOrbis’ data, and a big part of scrap supply to the Ural-based facility is done through NLMK Vtorchermet, which is also a part of the deal. The purchase of the long steel division of NLMK is aimed to increase the presence of IMH in the downstream sector. Before the invasion of Ukraine by Russia, IMH had a monthly pig iron volume of 150,000-160,000 mt for sale in the international market. Even though this year the volume has declined, it was still significant, but with the new purchase of the long steel plants of NLMK the volume may decline significantly, according to market sources. “Tula still may offer and sell small lots at high prices [as they have for low-manganese pig iron], but they have a limited allocation and are not in a hurry to sell now… After they bought the plants from Lisin [owner of NLMK], they are less interested in pig iron exports now,” a Russian source told SteelOrbis.