News

26 April 2006

Q1 2006 NLMK Group Trading update

OJSC Novolipetsk Steel (LSE: NLMK) today released the following regular trading update for Q1 2006.*

The table below shows the production volume of NLMK’s principal steel products on its main site for Q1 2006:

Q1 2006

Q1 2005

Change

Amount

Amount

Amount

%

(in million of metric tonnes, except for percentages)

Pig Iron

2.20

2.12

0.08

4.0

Steel

2.29

2.19

0.10

4.4

Slabs

0.98

0.90

0.08

8.9

Hot-rolled steel

0.43

0.51

-0.08

-14.6

Cold-rolled steel

0.59

0.54

0.05

7.8

Hot dip galvanized steel

0.09

0.06

0.03

55.7

Pre-painted steel

0.08

0.05

0.03

69.2

Non-grain-oriented steel

0.088

0.093

0.005

-5.9

Grain-oriented steel

0.04

0.03

0.01

19.3

The table below shows principal product tonnage produced at NLMK’s Danish subsidiary, DanSteel A/S:

Q1 2006

Q1 2005

Change

Amount

Amount

Amount

%

(in thousands of metric tonnes, except for percentages)

Heavy plates

114

146

-32

-27.7

The table below shows the average price realized for each of NLMK’s main steel segments** for Q1 2006:

USD per tonne (FCA)

Q1 2006

Q1 2005

Change

USD

%

Pig Iron

181

263

-82

-31.2

Slabs

255

428

-173

-40.4

Hot-rolled steel

426

516

-90

-17.4

Cold-rolled steel

508

615

-107

-17.4

Hot dip galvanized steel

745

818

-73

-8.9

Pre-painted steel

880

926

-46

-5.0

Non-grain-oriented steel

601

818

-217

-26.5

Grain-oriented steel

2909

1769

1140

64.4

The table below shows the DanSteel A/S average heavy plate prices** for Q1 2006:

USD per tonne (FCA)

Q1 2006

Q1 2005

Change

USD

%

Heavy plates

649

888

-239

-36.8

Anton Bazulev, NLMK’s spokesman, commented:

“We recently announced our new forecast of increasing steel output to 10 million tonnes by 2010.  NLMK’s steel production volumes for the first quarter of 2006 rose 4.4% in comparison to Q1 2005. In addition, the company substantially increased the production of high value-added products during the first quarter.  Despite a slight fall in prices at the beginning of the year, we continue to maintain a stable outlook for the global steel market.” 
________________
* All information on production volumes is preliminary and may be subject to change.

** excluding freight charge.