Outlook

Markets

• Global steel prices rebounded marginally in mid-quarter 1Q19; further dynamics to be subject to raw materials prices and macro
• China: effect from winter cuts could be below forecasts; steel prices to remain sensitive to the US-China trade talks
• Russia: seasonal demand recovery is expected in March; domestic prices to closely track export prices movements
  
• Europe: demand could stay flat driven by economic uncertainties; import restrictions to provide support to local prices
• USA: demand to remain firm due to the US economy’s strength; news on supply restarts to determine price movements

Q1 2019 results outlook

• Steel output will reduce to the level of Q1 2018, impacted by the seasonal fall in demand for long steel and scheduled repairs at the Lipetsk site.
  
• The Group's shipments are expected to be higher yoy with larger share of finished steel sales