Our sales strategy is based on efficient sales channels and a proactive and flexible marketing system.
2016 world steel production increased by 1% to 1.602 billion tonnes on the back of recovering prices for steel products, while mean capacity utilization rates stood at an average 69.3%. Global steel consumption increased by 1.1% to 1.1516 billion tonnes.
Steel output in China, which accounts for 50% of global steel production, increased by 1.6% to 807 million tonnes.
Steel consumption in China increased by 1.3% year-on-year to 681 million tonnes. At the same time export from China dropped by 3% year-on-year to 109 million tonnes. Apparent demand for steel in the developed countries remained at the 2015 level.
We constantly monitor and analyze key market events to identify opportunities for development of sales. We employ export traders within the Group whose flexible approach to sales enables us to exploit the most favorable markets.
Accounting for approximately 37% of the Company’s total sales, the Russian market is key for NLMK. NLMK Europe and NLMK USA account for 18% and 12% of the Group’s total sales in their respective regions. NLMK Group holds strong positions in international markets, delivering products to customers in more than 70 countries worldwide.
|Sales by regions, k tonnes||2011||2012||2013||2014||2015||2016|
|Russia||4 267||4 875||5 788||6 596||6 166||5 947|
|European Union||2 865||2 824||2 529||2 873||3 489||3 424|
|Middle East & Turkey||1 606||1 280||1 463||1 007||1 403||1 583|
|Asia||1 334||2 184||1 440||457||584||622|
|North America||1 730||2 413||2 102||2 787||2 370||2 248|
|Rest of the World||1 038||1 608||1 508||1 433||1 870||2 101|
|Total||12 840||15 184||14 828||15 126||15 863||15 925|
2016 crude steel production remained unchanged at 70.8 million tonnes. Steel consumption dropped by ~4% to 38.1 million tonnes.
Imports of finished steel were down by 4% year-on-year to 4.3 million tonnes due to exchange rate fluctuations and decline in demand.
Steel production by European countries has been going down for two years running, and in 2016 amounted to 162 million tonnes, which is 2.3% lower year-on-year.
Apparent steel consumption in Europe in 2016 grew by 2.3% year-on-year up to 157.4 million tonnes.
Crude steel production in 2016 remained at the 2015 level. Steel product imports declined by 15% down to 30 million tonnes, while steel product exports decreased by 7% to 8.5 million tonnes. 2016 consumption of finished steel products contracted by 4.7% to 91.6 million tonnes driven by the reduction of inventory levels of customers and trade companies.
In 2016 the prices for raw materials and steel products recovered from the 10 year record low of the late 2015 - early 2016. The iron concentrate price doubled; coal price grew two and a half times. The average prices for steel products have changed insignificantly relative to 2015; since the turn of the year the price upturn was 60-90% driven by growing prices for raw materials.