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Russian steel companies emerge from the crisis

Wednesday, 13 April 2011 12:00:53 (GMT+3)   |  

In 2010, Russian steel companies demonstrated a steady recovery from the recession. In particular, the net profit of Mechel increased by 791.2 percent in 2010 compared to 2009, up to $657.2 million. Also in 2010, Mechel's sales proceeds increased by 69.4 percent reaching $9.7 billion, against $5.8 billion in 2009.

Russian steelmaker NLMK reported that its net profit was $1.3 billion in 2010, against $215 million in 2009. The net income of Evraz Group was $532 million in 2010, compared to a $292 loss in 2009. MMK earned a net profit of $232 million in 2010, against $219 million in 2009.

The positive financial results of Russian steel companies were achieved due to favorable market conditions. Growth of demand and prices as well as a rise in steel production were observed in the market in 2010. During 2010, prices of steel products recovered, but still did not reach pre-crisis levels. Russian experts predict growth in steel product output in 2011, at about 8-13 percent. The domestic market will be the main trade area for Russian steelmakers due to a number of infrastructure projects which will be realized in 2011.