NLMK trading update for Q1 2012

NLMK, the LSE-listed leading Russian steel producer, announces the following regular trading update for Q1 2012.

OVERVIEW
The Group's steel output increased 14% q-o-q to 3.6 million t, which corresponds to over 90% utilisation rate, as the new BF-7 at Novolipetsk (NLMK’s main production site in Lipetsk) gradually increased its capacity load and the second EAF at NLMK Long Products was re-launched following transformer repairs in January 2012.

Consolidated sales grew 6.4% q-o-q to 3.8 million t. Flat steel sales increased by 13.7%, and long steel sales, including metalware, grew 16.7%. 35% of the Q1 total, or 1,307 million t, were sold domestically (+2% q-o-q).

NLMK International’s sales volumes totaled 1.1 million t, including 0.69 million t sold by NLMK Europe and 0.43 million t sold by NLMK USA.

OUTLOOK
NLMK expects Q2 sales volumes to increase, supported by the seasonal upturn in demand. We are keeping our previous crude steel production forecast for 2012 unchanged: the output will total about 15 million t.