On July 18, the Russian steelmaker Novolipetsk Steel (NLMK) announced preliminary production and sales data for the second quarter of 2011. According to the company statement, NLMK's crude steel output in the second quarter increased to 3 million mt, up 3 percent compared to the previous quarter. Total sales volume of NLMK Group is reported to be 3 million mt, up 10.9 percent compared to the previous year.
NLMK increased the total sales volume of steel products at its main site at Lipetsk to 2.6 million mt, up 10.8 percent year-on-year and by 28.4 percent compared to the previous quarter. The crude steel production also increased to 2.4 million mt, up 3 percent on a quarterly basis, driven by seasonal improvements in demand both in the domestic and export markets.
NLMK also stated that financial performance of the given quarter is expected to improve further, driven by higher prices and sales volumes. Revenues, according to preliminary estimates, will increase 24 percent to $2.9 billion. EBITDA margin will be in the range of 25-30%.