Russian steelmaker Novolipetsk Steel (NLMK) has announced its production and sales data for the third quarter and January-September period of 2022.
Accordingly, NLMK’s crude steel output in the third quarter totaled 3.9 million mt, down by 11 percent compared to the previous quarter and up by 1.0 percent year on year, amid reduced steel production at NLMK Lipetsk due to the decrease in steel demand in Europe and sanction restrictions. In the January-September period of this year, the company’s crude steel output moved sideways year on year, totaling 12.8 million mt.
In the third quarter, NLMK Group’s total steel product sales increased by 8.0 percent compared to the previous quarter and were up by five percent year on year to 4.3 million mt, driven by normalization of steel stocks accumulated in the second quarter of last year and recovery of flat steel demand in Russia and Turkey. In the January-September period, the company’s total steel product sales amounted to 12.9 million mt, increased by four percent year on year. In the third quarter, sales of finished steel products increased by 29 percent compared to the previous quarter and were up by 4.0 percent to 2.9 million mt. In the January-September period of this year, the company’s sales of finished steel products decreased by 7.0 percent to 7.6 million mt due to declining demand in key markets.
According to the announcement by NLMK, prices continued to fall in the steel and raw materials markets in the third quarter of this year. In the EU and US, economic activity was declining due to record-high inflation, supply chain disruptions, and interest rate hikes. Also, high energy prices put additional pressure on industrial production in Europe. Slow construction rates in China contributed to the decrease in demand for steel and raw materials in the region.