Steel Mills
NLMK USA Sales Jump on Strong Demand, More Russian Slab
Written by Michael Cowden
July 13, 2021
NLMK USA sales surged in the second quarter on strong demand and increased slab supplies from its parent company in Russia.
The U.S. subsidiary of Lipetsk, Russia-based NLMK Group recorded flat-rolled steel sales volumes of 502,000 metric tonnes in the first quarter.
That’s up 17% from 431,000 tonnes in the first quarter and up 52% from 330,000 tonnes in the second quarter of 2020, according to a trading update released by the parent company on Tuesday, July 13.
The gains were most pronounced in hot-rolled coil, where sales were 297,000 tonnes in the second quarter of 2021, more than double the 140,000 tonnes sold in the same quarter last year.
The increase was made possible in part by a big in jump slab exports from the parent company to NLMK USA.
NLMK Group shipped 679,000 tonnes of slabs to its U.S. and Danish subsidiaries in the second quarter, up 57% from 432,000 tonnes in the first quarter and a more than fivefold increase from 126,000 tonnes in the second quarter of last year.
The company does not break out results specifically for NLMK USA.
NLMK USA has in past quarters relied largely on Brazilian slabs because they, unlike slabs from its parent company, are subject to a Section 232 quota rather than the 25% tariff on Russian material.
And it’s not just sales volumes that rose. Average flat-rolled steel prices in the U.S. were up 28% quarter over quarter and up 179% year over year – with hot-rolled coil prices reaching an “all-time high” of $1,900 per ton (~$1,725 per short) in June, NLMK said.
Sales volumes for all products made by NLMK USA are below. NLMK’s U.S. subsidiary operates an electric arc furnace (EAF) steel mill in Portage, Ind., a hot strip mill and cold reduction mill in Farrell, Pa., and a coating facility in Sharon, Pa.
NLMK typically releases a trading update before it publishes quarterly earnings results. The company plans to release its second-quarter earnings on Thursday, July 22, a day that will also see earnings released by Nucor, the largest steelmaker in the U.S., and Reliance Steel & Aluminum, the largest service center in North America. NLMK, while comparatively small in the U.S., is the largest steelmaker in Russia.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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