NLMK USA Sees Q2 Sales Decline on Low Buying Activity

The US segment’s sales of 370,000 metric tons (407,855 tons) were down 5% from the prior quarter and down 26% year-on-year. The lower sales were blamed on a “backdrop of low buying activity amid high stocks accumulated.”

“A further decline in prices is expected as end-demand will be slowing down and the level of stocks accumulated since the beginning of 2022 is high,” the company cautioned in its latest trading update.

For the first half of the year, NLMK USA sales now stand at 760,000 metric tons (837,757 tons). This is an 18% decline from the same period of 2021 when sales were rising on pent-up demand, as well as a 13% drop from H1 2020 sales.

NLMK USA operates an EAF steel mill in Portage, Ind., a hot strip mill and cold reduction mill in Farrell, Pa., and a galvanizing facility in Sharon, Pa.

Globally, Q2 sales from NLMK’s operations were 4.01 million metric tons (4.42 million tons)—a 12% quarter-on-quarter drop and a 7.4% YoY decline. Sales in Russia were down 10% sequentially due to slowing economic activity as well as external trade and financial restrictions. Export market sales were off 33% sequentially, the steelmaker said.

By Laura Miller, Laura@SteelMarketUpdate.com