Steel Mills

NLMK Cautious on Slab Supply to U.S. Operation
Written by Sandy Williams
April 24, 2018
NLMK Group reported a 1 percent increase in first-quarter revenue, to $2.79 billion, as a 5.0 percent seasonal drop in sales was offset by stronger pricing. Net income grew by 17 percent from Q4 to $502 million, driven by higher operating profit.
NLMK USA sales increased 1.0 percent from the fourth quarter on higher demand for hot- and cold-rolled steel and concern over supply disruption. Revenue jumped 5 percent quarter-over-quarter to $43 million due to higher pricing. Average selling prices increased 4.0 percent in the first quarter to $160 per metric ton following the Section 232 announcement.
NLMK expects continued underlying demand growth in the U.S. with pricing dependent on Section 232 news. CEO Grigory Fedorishin said NLMK is paying the 25 percent tariff on slabs imported to its U.S. mill, but is still making $50-$70 per ton at the current pricing level. As exclusions to the tariff are approved, pricing may decline, said Fedorishin, so NLMK will review the situation every few weeks to see if it will maintain its supply chain to the U.S.
NLMK USA has requested an exemption for Russian slabs from its parent company, which is expected to be decided in mid-June. The U.S. operation imports more than two million tons of slabs per year, 90 percent of which are purchased from NLMK Group.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Gerdau reshapes North American footprint as tariffs squeeze long steel imports
Gerdau is repositioning its North American business to capitalize on a sharp shift in steel trade flows driven by elevated tariffs across the US, Canada, and Mexico.

CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.

USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

Algoma speeds up EAF transition, shifts focus to supplying mostly plate to Canadian market
Upended by the Trump regime's tornado of tariffs, Algoma Steel is pivoting on its cross-border business model, shifting its focus to supplying the Canadian market.