Outlook

The forecast relates to Q3 2016 Consolidated Financial Results under IFRS.

Q4 2016 outlook:

Markets

  • Russia: seasonally slower buying activity and fairly stable local prices due to low imports
  • Europe: demand recovery on the back of supportive regional fundamentals and restocking after summer lull
  • USA: cost push, supply discipline and ongoing trade actions to support pricing environment by the year end

Operational results

  • Group’s capacity utilization to remain above 90%
  • Crude steel output projected to recover qoq after completion of scheduled maintenance at Lipetsk site

Financial results

  • Results will be lower into a low season but profitability will improve on yearly basis on the back of better markets and stronger business fundamentals