Steel Mills

NLMK Cautious on Slab Supply to U.S. Operation
Written by Sandy Williams
April 24, 2018
NLMK Group reported a 1 percent increase in first-quarter revenue, to $2.79 billion, as a 5.0 percent seasonal drop in sales was offset by stronger pricing. Net income grew by 17 percent from Q4 to $502 million, driven by higher operating profit.
NLMK USA sales increased 1.0 percent from the fourth quarter on higher demand for hot- and cold-rolled steel and concern over supply disruption. Revenue jumped 5 percent quarter-over-quarter to $43 million due to higher pricing. Average selling prices increased 4.0 percent in the first quarter to $160 per metric ton following the Section 232 announcement.
NLMK expects continued underlying demand growth in the U.S. with pricing dependent on Section 232 news. CEO Grigory Fedorishin said NLMK is paying the 25 percent tariff on slabs imported to its U.S. mill, but is still making $50-$70 per ton at the current pricing level. As exclusions to the tariff are approved, pricing may decline, said Fedorishin, so NLMK will review the situation every few weeks to see if it will maintain its supply chain to the U.S.
NLMK USA has requested an exemption for Russian slabs from its parent company, which is expected to be decided in mid-June. The U.S. operation imports more than two million tons of slabs per year, 90 percent of which are purchased from NLMK Group.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.

Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.

Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.

Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.

Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.