17 October 2013

Q3 2013 NLMK Group Trading update

In Q3 2013, NLMK Group steel output grew by 3% to 3.897 m t, driven among other factors by a 0.1 m t increase in output at NLMK Kaluga. Q3 steel product sales totaled 3.719 m t (-1.4% q-o-q). Finished product sales grew by 5.5% q-o-q to 2.896 m t; their share in total sales growing 5 p.p. to 78%. Sales of value added products1 increased by 2.1% to 1.411 m t, accounting for c.50% of finished product sales. Sales to the Russian market reached 43% (+5 p.p. q-o-q) of total sales with 1.610 m t (+14% q-o-q). Traditionally, key export markets were Europe, USA, South-East Asia, as well as the Middle East. Outlook Q4 2013 steel output is expected to grow by 6% q-o-q to 4.1 m t, with approximately 290,000 t to be produced by NLMK Kaluga. Finished product sales are expected to total approximately 3.9 m t (+5% q-o-q).