Steel Mills

NLMK USA Has Great Year, Weaker Q4
Written by Sandy Williams
February 8, 2019
Sales at NLMK USA fell 15 percent from third- to fourth-quarter 2018 on expectation of lower steel prices. Shipments dropped 500,000 metric tons from 590,000 tons, sequentially. The decrease in shipments, combined with a 3 percent decline in average price, led to sales falling 17 percent to $500 million.
On a yearly basis, NLMK USA performed well. Shipments were up 2 percent year-over-year to 2.3 million metric tons and revenue increased 28 percent to $2.213 billion. “Prices surged to abnormal levels spurred by Section 232,” wrote NLMK. Slab sales from NLMK Group to its U.S. segment decreased during the year due to trade restrictions.
NLMK expects a strong U.S. economy to keep demand firm during the first quarter and to offset any drop in pricing. Capacity additions are expected to determine price movements in the U.S.
NLMK Group CFO Shamil Kurmashov commented on 2018 company results: “In 2018, demand for steel continued to recover, coupled with a rise in protectionism in key markets. In this context, NLMK Group’s flexible business model that helped it secure its presence in key sales markets enabled the company to grow its sales by 7 percent yoy (by 1.1 MT) to 17.6 million MT, hitting an all-time high for the company. NLMK Group retained its leadership on the Russian market in terms of steel output and consolidated its positions on global markets. Revenue grew by 20 percent yoy to $12.0 billion; NLMK’s EBITDA increased by 35 percent to $3.6 billion, while its EBITDA margin grew to 30 percent (+4 p.p. yoy).”
NLMK expects steel production and shipments to be flat in the first quarter.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Domestic mill shipments slip in July: AISI
US steel shipments decreased month over month in July, but were up from last year, according to the latest figures from the American Iron and Steel Institute (AISI).

Nippon and USS drop litigation vs. USW and Cliffs
Another chapter of the Great U.S. Steel Buyout of the 2020s melodrama has closed, with all involved parties terminating the litigation disputes between them.

Steel Summit: Analysts say demand likely to struggle until 2027
Steel industry analysts at this year's SMU Steel Summit said they see lackluster demand through this year and next.

USS Clairton begins full production of batteries 19 and 20, 13 and 14 hot idled
U.S. Steel has activated batteries 19 and 20 at its Clairton Coke Works facility after pausing each “out of an abundance precaution” following an explosion at the site on Aug. 11.

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.