Steel Mills
NLMK USA Sales Surge on Construction and Pipe Demand
Written by Sandy Williams
April 27, 2017
NLMK USA sales jumped 33 percent from fourth to first quarter on stronger demand from construction and pipe manufacturers. Sales volume totaled 562,000 tonnes. Sales revenue was $399 million, which included $186 million for HRC, $109 million for CRC, $96 million for HDG, and $1 million for slabs. Profit for first quarter was $54 million compared to a loss of $12 million in Q1 2016.
NLMK noted during the earnings call that first quarter prices in home markets in the United States, Europe and Russia were showing premium in the merchant market. In particular, the Russian market premium was $70-80 dollars vs. export FOB Europe over $100 premium and U.S. over $200.
When asked about operations in NLMK’s foreign divisions, the executives said there was further room for improvements in terms of operational efficiency. “We’ve done a good job in making foreign assets more competitive from where they were before. All the divisions are profitable, all our plants except one outside of Russia are profitable. In the U.S., particularly, there is room for productivity improvements. There is some slack in available capacity which can and should be used in today’s pricing environment. Currently we are at 80-90 percent of capacity so there is some headroom there which we should be able to utilize.”
NLMK Group revenue grew 10 percent q/q to $2.15 billion on sales of 3.6 million tonnes. Net profit for the period was $323 million. Sales grew in the U.S. and EU while seasonal weakness was experienced in Russia.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor breaks ground on new Berkeley galv line
Nucor broke ground on a new galvanizing line at its Nucor Steel Berkeley sheet mill in Huger, S.C., on Thursday, May 2.
USS, Nippon merger delayed by DOJ antitrust review
The sale of U.S. Steel Corp. to Nippon Steel Corp. has been delayed by the US Department of Justice’s antitrust investigation. The Justice Department, which is conducting an antitrust review of the merger, has requested additional information from both USS and NSC. The companies originally anticipated closing the sale in the second or third quarter […]
U.S. Steel Q1 earnings slip, BRS expansions proceed
U.S. Steel posted slightly lower Q1’24 earnings as stronger earnings from its sheet mills were partially offset by a weaker performance from it tubular division. All told, the Pittsburgh-based steelmaker reported Q1’24 earnings of $171 million. That's down 14.1% from $199 million in Q1’23 on sales that fell 6.9% to $4.16 billion in the same comparison.
ArcelorMittal says Calvert CR outage over, floats buying Nippon’s stake in JV
ArcelorMittal posted a narrower Q1’24 profit compared to Q1’23 but remained optimistic about steel's long-term demand prospects.
SMU Community Chat: Hybar’s ambitious plans as newest player in rebar
Hybar has big plans for entering the American steel market. Although it is the newest player in the US rebar market, the startup is led by an experienced, nimble, and ambitious team, and backed by investors with deep pockets. Industry titan and Hybar CEO David Stickler joined SMU Managing Editor Michael Cowden on Wednesday’s Community Chat to update the SMU community on the company’s first mill, and its grand plans for the future.