In Q3, NLMK Group sales remained stable at 3.8 million tonnes (+0.2% q-o-q). NLMK grew its finished product sales in the domestic market to 1.283 million tonnes (+5% q-o-q), capitalising on demand from its key consumers, i.e. Russian construction and machine-building sectors. The share of domestic sales increased to 34% (+2 p.p.). As demand for flat steel in the export markets weakened, NLMK grew its slabs sales as these enjoyed stable demand.

In 9M 2012, NLMK Group produced 11.2 million tonnes of steel, up 24% y-o-y. Around 95% of all steel was produced domestically.

Outlook

In Q4, the Group’s steel production is expected to remain unchanged at 3.8 million tonnes. NLMK Group confirms its previously announced steel production forecast for 12M 2012 at 15 million tonnes.