Steel Mills

NLMK USA’s Sales Decline Considerably

October 18, 2022

NLMK USA saw a considerable decline in third-quarter and year-to-date sales due to high inventories and a slowdown in customer activity because of falling steel prices.

NLMK

The US flat-rolled steel company — made up of NLMK Indiana, NLMK Pennsylvania, and the Sharon Coating galvanizing facility in Pennsylvania — posted preliminary sales of 300,000 metric tons in Q3. This was a 9% drop from second-quarter sales and a 42% decline from Q3 2021.

Q3 production in the US was 1% lower sequentially, said Russian parent company NLMK Group in its latest trading update.

The company reported weak overall demand from automotive companies because of semiconductor supply disruptions, high stock levels, and cheaper raw materials prices.

In the first nine months of the year, lower demand from 2021’s high base resulted in a 27% year-on-year (YoY) decline in sales for NLMK USA to 1.1 million metric tons.

A recovery of demand in Russia and Turkey led to an 8% sequential rise and a 5% YoY rise in NLMK Group’s company-wide Q3 sales to 4.3 million metric tons. In the first three quarters of the year, total sales of 12.9 million metric tons climbed 4% higher YoY.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. Since 2007, she has held various editorial and marketing positions with steel industry publications, associations, and mills. In 2021, after a five-year hiatus working across other industries, she returned to steel trade journalism, joining SMU in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.