NLMK updated Q2 2014 data

Novolipetsk Metallurgical Plant reports that sales in the second quarter of 2014 remained at the high level of the previous quarter at 3.854 million tonnes, while production is expected to increase to 4 million tonnes in the third quarter.

In the second quarter, rolled steel sales rose 11.9 percent to 2.774 million tonnes. The share of rolled products sales in total sales was 72 percent, an increase of 8 percent compared to the previous quarter. The largest growth was recorded in long product sales, at 15.9 percent qoq and 45.6 percent year-on-year, reaching a record level of 0.568 million tonnes.

Steel product sales in the Russian market grew 12 percent qoq to 1.735 million tonnes, driven by traditionally strong seasonal demand for the company's products. In the second quarter of 2014, the Group's steelmaking capacity utilized 94 percent, and the capacity utilization rate at the main site in Lipetsk reached 98 percent.

Steel production by NLMK Group decreased by 3.5 percent compared to the first quarter to 3.774 million tonnes due to repair work and the development of pulverized coal injection technology at the Lipetsk site. It is assumed that in the third quarter this decrease will be offset by an increase in steel output to 4 million tons. Rolled steel output increased by 26.8 percent qoq to 3.105 million tonnes, driven by strong demand in the domestic and export markets. The output of semi-finished products decreased by 12.7 percent against a quarterly comparison to 990 thousand tons.