Steel Mills
NLMK USA Sales Slide in Q4
Written by Sandy Williams
January 19, 2019
NLMK USA sales improved 2.0 percent year-over-year in 2018 to 2.28 million metric tons. Results were driven by increased sales of hot-rolled steel and galvanized flats in the U.S.
Sales slumped during the fourth quarter as customers put purchases on hold in expectation of lower steel prices. Sales slid 15 percent from the third quarter to .500 MT.
Pricing for steel products decreased by 10 percent in the fourth quarter as balance was restored to supply and demand, said NLMK.
NLMK Group sales were up 7.0 percent for 2018 with steel sales increasing 2.0 percent to 17.6 MT. Steel output grew 2.0 percent to 17.5 MT. Capacity utilization was at 99 percent.
Fourth-quarter Group sales increased 5.0 percent from the third quarter to 4.6 MT, driven by higher demand for slabs and pig iron in export markets. Sales in international markets rose 32 percent quarter-over-quarter, but dipped by 9.0 percent at home due to weakening demand in the Russian market.
Steel prices in Russia declined 5-9 percent for uncoated flat steel. Export slabs prices (FOB Black Sea) were down 13 percent during the quarter.
NLMK noted that the average coal price grew 19 percent in Q4 due to solid demand and limited availability. The price increase was impacted by disruptions to operations caused by cyclones in Australia during December. Average iron ore prices jumped 7.0 percent during the quarter also due to weather impacts in Australia.
Scrap prices in the U.S. dropped 2.0 percent in Q4 and 1.0 percent in the European market. Average scrap price in Russia declined 5.0 percent quarter over quarter.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor profits jump in Q3, but company cautions on Q4 outlook sequentially
Nucor’s profits more than doubled in the third quarter year over year, but the company expects Q4’25 to be lower sequentially.
SDI announces proprietary low-carbon EDGE products
Steel Dynamics has announced lower-embodied-carbon steel products BIOEDGE and EDGE, and expects “immediate interest” from several markets for some of the offerings.
Wheeling-Nippon Steel raises Galvalume coating extras
The steelmaker released updated extras to customers on Oct. 15, marking the second adjustment in just six weeks following their early September revision
Cliffs offloading some FPT assets, considering HBI plant sale as well
Lourenco Goncalves confirmed that Cleveland-Cliffs is actively selling off portions of its Ferrous Processing and Trading (FPT) assets. Its direct reduction plant in Toledo, Ohio, may also be up for grabs...
SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...