Global steel market
2017 world steel production increased by 5% to 1.69 billion tonnes on the back of recovering prices for steel products, while mean capacity utilization rates stood at an average 72.3%. Global steel consumption increased by 4.7% to 1.587 billion tonnes.
Steel output in China, which accounts for 49% of global steel production, increased by 5.7% to 832 million tonnes.
Steel export from China dropped by 30% year-on-year. Demand for steel in home markets increased against the backdrop of economic growth.
Sales by region
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 36% of the Company’s total sales, the Russian market is key for NLMK. NLMK Europe and NLMK USA account for 15% and 14% 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||2017|
|Russia||4 267||4 875||5 788||6 596||6 166||5 947||6 009|
|European Union||2 865||2 824||2 529||2 873||3 489||3 424||3 051|
|Middle East & Turkey||1 606||1 280||1 463||1 007||1 403||1 583||2 220|
|Asia||1 334||2 184||1 440||457||584||622||537|
|North America||1 730||2 413||2 102||2 787||2 370||2 248||2 765|
|Rest of the World||1 038||1 608||1 508||1 433||1 870||2 101||1 887|
|Total||12 840||15 184||14 828||15 126||15 863||15 925||16 469|
Russian steel market
2017 crude steel production increased by 1% year-on-year to 71.3 million tonnes. Steel consumption increased by 5% to 40.6 million tonnes.
Imports of finished steel were up by 47% year-on-year to 6.2 million tonnes due to exchange rate fluctuations and decline in demand.
EU steel market
Steel production by European countries in 2017 amounted to 168 million tonnes, which is 3.7% higher year-on-year.
Apparent steel consumption in Europe in 2017 grew by 2.5% year-on-year up to 162.2 million tonnes.
US steel market
Crude steel production in 2017 increased by 4% year-on-year to 81.6 million tonnes. Steel product imports increased by 15% to 35 million tonnes, while steel product exports increased by 7% to 9 million tonnes. 2017 consumption of finished steel products grew by 6.4% to 97.7 million tonnes driven by the demand growth from construction, automotive and oil&gas sectors.
Average global coal and iron ore prices grew by 26% yoy and 22% yoy, respectively, driven by the growth in global demand for steel and a restored supply balance.
Average prices for steel products in the US increased by 15-20% yoy, while in Russia and the EU inceased by 20-30% yoy. Export prices (FOB Black Sea) grew by 25-35%, due to lower Chinese export.