At a tough time for global steel markets, Novolipetsk Steel (NLMK) has established itself as Russia’s largest steel producer after bringing on stream the country’s first new blast furnace since Soviet times.
But, with steel prices weak, the extra output isn’t generating as much cash as NLMK might have hoped. The group warned of an 8 per cent drop in fourth quarter revenues and a flat Q1 2013. Read more
MMK, Russia’s third largest steel producer, on Friday joined rivals Severstal and NLMK in pinning a gloomy forecast to its third quarter results as the falling price of steel undermines business. Read more
Evraz, Russia’s largest steelmaker, on Thursday reported a $50m net loss for the six months to the end of June and a 28 per cent decline in ebitda to $1.2bn on a 9.1 per cent drop in revenues to $7.6bn.
With the global steel market in the doldrums, the results came as little surprise, especially after rivals NLMK and Severstal reported their numbers in the last few days. But all three Russian producers are benefiting from reasonably strong infrastructure spending in Russia, not least on the railways. While life is tough, it’s much tougher elsewhere in Europe. Read more
Russian steelmakers may have bounced back from the 2008 financial meltdown, but one appears to be heading into fresh trouble as a new wave of the crisis envelops Europe.
Novolipetsk Steel, Russia’s fourth biggest steel producer, said the deterioration in the global steel market and a 20 per cent rise in costs at its Russian operations caused a drop in earnings before interest, taxes, depreciation and amortization in the fourth quarter of the year. Ebitda declined to $383m from $478m in the previous quarter. Read more