Steel Mills
NLMK USA Sales Jump 16% in First Quarter
Written by Sandy Williams
April 12, 2021
Russian steelmaker NLMK said sales in its U.S. division increased 16% in Q1 2021 to 430 million metric tons. The increase was driven by hot-rolled and galvanized steel. Sales of hot rolled increased 17% from the fourth quarter of 2020 and galvanized steel sales soared 37%. Sales of cold rolled fell 13%.
On a year-over-year basis, sales plunged for both cold-rolled and galvanized steel due to the prolonged strike at NLMK Pennsylvania, which ended in March. Hot-rolled sales gained 4% compared to Q1 2020.
Raw material prices were elevated globally during the first quarter. Scrap prices in the U.S. and EU jumped 29% quarter-over-quarter as a result of limited supply due to seasonality and lower scrap generation from the automotive sector.
Steel prices jumped in all regions as recovering business demand triggered steel shortages. Russian uncoated flat steel and rebar prices soared 44% from the prior quarter and 52% from a year ago. Slab prices (FOB Black Sea) leapt 31% as export demand grew during the quarter. EU flat steel prices rose 34% quarter-over-quarter at the end of March, reaching highs not seen since 2008. U.S. flat rolled prices were up 53% from Q4, reported NLMK.
NLMK Group consolidated sales declined 7% from the previous quarter to 3.9 million metric tonnes and 13% year-over-year. External sales were negatively impacted by a decrease in pig iron sales due to an overhaul of one of the blast furnaces at NLMK Lipetsk as well as an increase in slab shipments to NLMK USA. Unfavorable weather resulted in a stock build-up at Black Sea ports that will be sold in Q2 2021. “Home market” sales were up 4% quarter-over-quarter: 4% in Russia, 16% in the U.S. and 4% in the EU.
Group steel output rose 12% from Q4 to 4.4 million metric tonnes following completion of equipment overhauls and maintenance at the Russia Long Products segment, the company said.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs steadfast in commitment to Middletown decarb project
Cleveland-Cliffs Inc. on Monday reiterated its commitment to a major decarbonization project at its Middletown Works in Ohio, despite an earlier report suggesting otherwise.
Nucor expects lower steel prices to drive Q3 earnings decline
Nucor blamed lower steel prices for weaker third-quarter results in earnings guidance released on Tuesday.
SDI guides toward lower Q3 earnings on weaker flat-rolled steel prices
Steel Dynamics Inc. (SDI) expects lower third-quarter earnings on the heels of “meaningfully lower” prices at its flat-rolled steel operations. The Fort Wayne, Ind.-based steelmaker expects Q3’24 earnings of $1.94 to $1.98 per diluted share, according to figures released on Monday. That’s down from $2.72 per share in Q2’24 and down from $3.47 per share in Q3’23.
Stelco shareholders OK $2.5B sale to Cliffs
Stelco shareholders voted overwhelmingly on Monday to OK the $2.5-billion sale of the Canadian flat-rolled steelmaker to Cleveland-Cliffs. Indeed, 99.97% of those who cast ballots voted to approve the deal, according the Hamilton, Ontario-based steelmaker.
White House may delay decision on USS-Nippon deal until after election: report
The White House decision on blocking Nippon Steel’s play for Pittsburgh-based U.S. Steel might be pushed back until after the upcoming presidential election, according to a report in the Washington Post.