OJSC Novolipetsk Metallurgical Plant increased sales in the 1st quarter

OJSC Novolipetsk Iron and Steel Works reported that in the first quarter of 2014 its capacity utilization rate remained at a high level of 92 percent. The utilization rate at the main plant, NLMK, was 98 percent. Scheduled repairs are expected at the Lipetsk site in the second quarter.

Meanwhile, NLMK Group's steel production totaled 3.91 million tonnes, down 3.8 percent qoq. This decline in production was mainly due to a 7.5 percent QoQ decline in the long products segment due to the development of a new product.

Group sales in the first quarter were up 8.3 percent from the prior quarter to 3.867 million tonnes, driven by improved demand and restocking. Rolled steel sales rose 11 percent qoq to 2.565 million tonnes. The share of rolled products sales in the total volume was 66 percent. Sales in the Russian market rose 6.1 percent qoq to 1.549 million tonnes.

Sales in other markets were 2.318 million tonnes, up 9.8 percent qoq, up 60 percent. Steel segment sales rose 15.8 percent to 3.163 million tonnes, driven by a significant increase in exports. The long products segment gained 3.2 percent qoq, supported by improved demand in the Russian market at the end of the first quarter. The foreign segment of rolled products increased in price by 3.5 percent, including at NLMK USA by 1.5 percent qoq.