30 January 2013
Q4 2012 and 2012 NLMK Group Trading update
Despite the tough conditions in the global steel markets, in 2012 NLMK Group demonstrated high operational efficiency. Steel production grew 25% to 14.9 million tonnes, with Russian assets accounting for approximately 95%. Based on year-end results, NLMK became the leading steelmaker in the country – the Group’s Russian assets produced approximately 20% of all steel in Russia.
Group sales hiked 18.4% to 15.2 million tonnes, including +27% for HVA (to 5.1 million tonnes).
In Q4 NLMK Group sales totalled 3.7 million tonnes (-3% q-o-q). Responding to the slump in demand for rolled steel in the export markets, NLMK grew its sales of semi-finished products that enjoyed stable demand.
Q4 revenue is expected to decline by c.8% q-o-q resulting from weaker market conditions and seasonal decline in sales at year end. We believe Q1 2013 steel output will remain sequentially flat. The beginning of 2013 brought a mild improvement in pricing due to finished product restocking and a corresponding revival in demand, as well as growth in raw material prices.