Outlook

Markets

• China: prices to be underpinned by solid demand from construction and low stocks despite higher output following winter cuts
• Russia: demand is seasonally robust and provides support to domestic prices, although still subject to export benchmark movements
  
• Europe: demand could stay flat driven by economic uncertainties; local prices to remain at current levels in Q2’19
• USA: seasonally stronger consumption from construction to keep prices stable with marginal downside risk

Q2 2019 results outlook

• Steel output will go down by 6-8% qoq due to the start of BF 6 overhaul and repairs underway in BOF shop No. 2 at NLMK Lipetsk. As a consequence, a qoq decline in sales is expected with expansion of the finished steel's share in the sales portfolio.