Outlook

Markets

• Global steel prices to moderate amid rising protectionism worldwide, which is spreading beyond the steel industry
• China: winter cuts could be lower than previously expected but still should underpin prices and constrain exports
• Russia: seasonal slowdown in demand with domestic prices to reflect global trends
• Europe: demand is expected to be stable yoy, import restrictions may provide support to local prices
• USA: demand to remain firm due to the US economy’s strength

Q4 results outlook

• The Group’s crude steel production would be in line with Q3’18 results keeping utilization rates at high level
• The sale of flat steel inventories accumulated at ports at the end of Q3’18 is expected to offset the impact from seasonal decline in demand and keep our Q4’18 shipments flat qoq