NLMK USA Results Hurt by Strike and Slab Shortage

NLMK USA sales in the fourth quarter of 2020 increased 1% from the third quarter to 370,000 metric tons. Sales plummeted 22% from a year ago due to low capacity utilization at NLMK Pennsylvania attributed to the ongoing strike and a shortage of slabs for duty-free import. Rolling capacity utilization at the U.S. segment was 41 percent in the fourth quarter, said company executives reporting quarterly results.

Higher hot-rolled steel prices in Q4 lifted revenue by 11% to $248 million compared to the third quarter. EBITDA totaled $107 million, primarily due to a refund of $97 million in a settlement agreement with the U.S. Department of Commerce. The settlement resolved a lawsuit by NLMK challenging Commerce’s denials of NLMK’s requests for exclusion from Section 232 tariffs. Excluding the refund, EBITDA was $10 million.