In its financial results according to US GAAP (Generally Accepted Accounting Principles) for the first half of the current year, Russian steelmaker NLMK Group's net profit increased by 48 percent year on year to $491 million. The company's sales revenues amounted to $4.35 billion, down 20 percent year on year, due to a 15-30 percent year-on-year reduction in sales prices.
In the first six months, NLMK's sales volume increased by four percent to 7.97 million mt, compared to the same period of the previous year on the back of an increase in export shipments of semi-finished steel products to NLMK’s captive operations abroad that offset the decline in finished product sales, down six percent year on year. The company produced 7.92 million mt of crude steel, up three percent year on year.
“Price spreads in the export markets contracted significantly, due to lower raw material prices and an oversupply of steel products, including on the back of substantial exports from China. In the Russian market, an uptick in steel demand was supported by appreciation of the ruble, stock accumulation by customers and declining imports,” said NLMK CFO Galina Aglyamova.