Q1 2014 NLMK Group Trading update

NLMK Group is pleased to announce Q1 2014 key operating highlights.

Q1 2014 key operating highlights

In Q1 2014 Group steelmaking capacity utilization rate remained at high level (92%). The utilization rate at the main plant (Novolipetsk) was 98%.
NLMK Group crude steel production totaled 3.91 million t (-3.8% q-o-q). This reduction in steel production was related mainly to the reduction in Long Products Segment output (-7.5% q-o-q) due to the mastering of a new product.
Q1 2014 Group sales jumped by 8.3% q-o-q to 3.867 m t driven by improved demand and restocking.
Sales of rolled steel products went up by 11% q-o-q to 2.565 m t. The share of rolled steel sales in total sales was 66% (+1.4 p.p.).
Sales to the Russian market went up by 6.1% q-o-q to 1.549 m t. Sales to other markets totaled 2.318 m t (+9.8% q-o-q), or 60% of total sales.
Steel Segment sales jumped by 15.8% q-o-q to 3.163 m t driven by the significant increase in exports.
Long Products Segment sales went up by 3.2% q-o-q to 0.653 m t supported by improved demand on the Russian market at the end of Q1.
Foreign Rolled Products Segment sales increased by 3.5% q-o-q to 0.558 m t, including NLMK USA sales of 0.458 m t (+1.5% q-o-q).

Q2 2014 outlook

Q2 output is expected to remain sequentially flat due to scheduled maintenance of the hot end operations at Novolipetsk.

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