According to the NLMK group of Russian billionaire Vladimir Lisin, export prices for steel have dropped significantly. As the company said in its quarterly report released on Tuesday, October 15, export quotations for slabs on a FOB Black Sea basis decreased by 11% qoq and 21% qoq due to lower demand for export markets.
Prices for flat steel in the USA, according to NLMK, decreased in July-September by 5-8% and by 26-35% per year due to a slowdown in demand and oversupply. In the EU, flat steel prices in dollar terms declined by 3-6% qoq and 16-21% qoq (YoY) amid weak demand.
NLMK noted that wholesale steel prices in Russia increased by 2% in Q3 2019 due to seasonally high demand and limited supply.
The company announced that it was forced to cut steel production by 6 percent compared to the second quarter due to the continued overhaul of NLMK's blast furnace and converter facilities. Sales volume against the backdrop of lower production decreased by 6% to 4 million tons due to lower sales of semi-finished products.
