(Releads, adds outlook for Russian steel demand)
LONDON Feb 10 NLMK, one of Russia's
top steelmakers, estimated its crude steel output would rise by
up to 3.8 percent in 2014 and said it had slashed planned
investment for the next three years due to lacklustre market
A sharp decline in demand in crisis-hit Europe and signs of
a slowdown in top consumer China have forced steel companies to
cut costs and struggle with oversupply.
NLMK's crude steel production will rise to between 15.9
million and 16 million tonnes this year, from 15.4 million in
2013, Chairman Oleg Bagrin told journalists on Monday.
Demand growth on the domestic market, which has been more
robust than in Europe, will nevertheless decline to 2-3 percent
from 3-4 percent last year, Bagrin said.
The company cut planned investment to $1.6 billion for
2014-2017 from $8 billion in 2008-2012, he said, echoing Russian
rival Severstal, which last week said it would invest
a quarter less in 2014 than the year before.
Shares in NLMK, which have lost over 60 percent of their
value since hitting a peak in 2011, closed down 0.6 percent in
The company said it expected sales to rise by 8 percent by
2018 to 16.3 million tonnes from 14.9 million last year.
(Reporting by Silvia Antonioli; Writing by Alessandra Prentice;
editing by Jane Baird)