The Russian steelmaker Novolipetsk Steel (NLMK) has announced that its crude steel production in 2010 increased by 8.8 percent year on year to 11.5 million mt, due mainly to increased output at its main steel production site in Lipetsk, while its finished steel product output went up by 9.9 percent year on year to 11.6 million mt. The utilization rate at NLMK's steelmaking facilities was 97 percent in 2010 - up four percentage points year on year.
NLMK's total steel product sales in 2010 increased by 10.8 percent compared to 2009 amounting to 11.7 million mt.
In Q4 2010, NLMK was operating almost at full capacity (98 percent), and produced about three million mt of crude steel, as in Q3.
NLMK: Visible demand recovery at beginning of 2011
NLMK said it anticipates its production volume in Q1 2011 will be similar to the Q4 2010 volume, as demand continues to increase in the New Year. "There is a visible recovery in demand at the beginning of the year, accompanied by rising prices for steel products, especially evident in the export markets," reads NLMK's statement.
According to preliminary estimates, NLMK's revenue in Q4 2010 will grow by four percent to $2.3 billion, while its EBITDA margin is expected to be in the region of 25 percent.
Q4 2010 (million mt) | Change q-o-q | 2010 (million mt) | Change y-o-y | |
2.988 | +0.9% | 11.548 | +8.8 | |
2.338 | +2.4% | 9.265 | +9.3 | |
Saleable slabs | 1.033 | +21.1% | 3.614 | +5.7 |
Billets | 0.088 | +46.1% | 0.247 | -8% |
Flat steel | 1.400 | -3.1% | 5.709 | +14% |
0.330 | -7.9% | 1.184 | +0.6% | |
Metalware | 0.053 | -13% | 0.221 | +16.3% |
Total finished products | 3.052 | +4.6% | 11.623 | +9.9% |
Total finished product sales | 3.044 | +0.4% | 11.716 | +10.8% |