The NLMK Group has reported Q2 2014 steel output of 3.7Mt, down 3.5% quarter-on-quarter.

The Russian steelmaker's drop in output is linked with repairs and the installation of PCI systems at the company's Lipetsk blast furnace operations.

NLMK has reported steelmaking capacities of 94% (98% at Lipetsk) and 86% for its long products division (including 92% at NSMMZ and 77% at NLMK Kaluga). The figure for NLMK USA was 81%.

While key external destinations for NLMK products were North America, Europe, the Middle East and South East Asia, the company has reported flat sales quarter-on-quarter.

Group sales totalled 3.8Mt, roughly the same as the previous quarter, but rolled products sales were up 11.9% quarter on quarter to 2.7Mt. Long products were up 15.9% quarter-on-quarter and 45.6% year-on-year.

The share of rolled product sales as a percentage of total sales was 72%. Rolled product output increased by 26.8% quarter-on-quarter to 3.1Mt thanks to high demand in export and domestic markets. Semi-finished product output decreased 12/7% quarter-on-quarter.

H1 2014 highlights include group sales increasing to 7.7Mt (up 2.4%) and sales to the Russian domestic market growing by 20.3% year-on-year to 3.2Mt. H1 group output rose 2.7% to 7.6Mt and this, claims NLMK, was because of the launch of NLMK Kaluga in mid-2013.

The company expects steel output to grow 4Mt in Q3.