On April 19, the Russian steelmaker Novolipetsk Steel (NLMK) announced that its crude steel production in the first quarter of this year decreased by 2.8 percent quarter on quarter to 2.9 million mt, mainly due to scheduled repair works, while its finished steel product output fell by 6.9 percent as compared to the last quarter of 2010 to 2.8 million mt. The utilization rate at NLMK's steelmaking facilities was 97 percent in the given period.
NLMK's total steel product sales in the first three months of this year increased by 1.8 percent year on year to 2.8 million mt. However, as compared to the previous quarter, NLMK's sales dropped by 8.7 percent, in line with reduced production.
NLMK: Increasing raw material prices may support steel prices in Q2
NLMK said it anticipates growth in production volumes and an improvement in the sales mix towards an increased share of value added products. "According to our preliminary estimates, increasing global raw material prices may help to sustain steel prices during the second quarter, which will remain flattish quarter on quarter with the possibility of growth in selected grades," reads NLMK's statement.
According to preliminary estimates, NLMK's revenue in Q1 this year will reach about $2.4 billion, and its Q1 EBITDA margin is estimated to be in range of 20‐25 percent.
Sales | Q1 2011 (mt) | Change q-o-q (%) | Change y-o-y (%) |
153,000 | +98.2 | +62 | |
Slabs | 715,000 | -35.4 | -29.1 |
Billets | 46,000 | -52.4 | +47.2 |
Flat steel | 1,480,000 | +6.1 | +11.6 |
345,000 | +4.4 | +46.5 | |
Metalware | 54,000 | +1.4 | +11.7 |
Total product sales | 2,793,000 | -8.7 | +1.8 |