The Russian steelmaker Novolipetsk Steel (NLMK) has announced that in Q3 2010 its total steel product sales amounted to 3.04 million mt - up 4.8 percent quarter on quarter, but down 4.1 percent year on year.
Q3 2010(million mt) |
Change q-o-q |
Change y-o-y |
|
0.173 |
-27.1% |
-21.7% |
|
Slabs |
0.889 |
+7.8% |
-16.3% |
Billets |
0.072 |
+13.6% |
+18.9% |
1.454 |
-2.1% |
+3.2% |
|
0.394 |
+65.6% |
+8.2% |
|
Metalware |
0.062 |
+8.4% |
+6.3% |
Total sales |
3.044 |
+4.8% |
-4.1% |
NLMK's domestic sales in Q3 continued to grow, reaching approximately 32 percent of total sales, a two percentage point increase quarter on quarter. Meanwhile, demand from NLMK's export markets remained stable despite the decrease in prices in the first half of the quarter.
Crude steel output rises to three million mt in Q3
In Q3 2010, NLMK's crude steel production was in line with the previously anticipated volume, amounting to three million mt - up 2.6 percent quarter on quarter. NLMK's steelmaking facilities were running at approximately 96 percent capacity in Q3, with its main production site in Lipetsk running at 97 percent, while its long product division companies were running at 100 percent capacity, due to the increased demand from domestic consumers.
Meanwhile, NLMK's Q3 output of finished steel saw a 1.1 percent quarter on quarter decrease to 2.9 million mt.
NLMK may increase Q4 exports due to predicted decline in domestic demand
NLMK said that in Q4 2010 it expects some seasonal decline in demand from the domestic construction sector, which may put additional pressure on prices, impact the overall sales structure and increase export volumes.
NLMK also anticipates that its production and sales volumes in Q4 2010 will be similar to Q3.
According to preliminary estimates, NLMK's revenue in Q3 2010 is expected to total $2.1 billion, which is largely in line with Q2, while its Q3 EBITDA margin is expected to be in the region of 30 percent.