Russia's Largest Steelmaker Reports Almost Five-fold Increase In Losses
- 30.04.2026, 22:06
The plant is among the top 20 largest in the world.
Novolipetsk Steel, the largest steel mill in Russia and one of the top 20 largest in the world, ended the first quarter of 2026 with a loss. According to NLMK Group's RAS statements, which include only its Lipetsk plant, the company made a loss of 5.9 billion rubles during the quarter. Compared to the same period last year (1.23 billion rubles), the mill's loss increased 4.8 times, reports The Moscow Times.
Built in the 1930s and capable of producing 17 million liquid steel per year, Novolipetsk Combine lost 10% of its revenue (it fell to 145.57 billion rubles) and received 6.1 billion rubles in loss on sales - 3.2 times more than in the first quarter of 2025.
The industry environment for steelmakers continues to deteriorate, analysts at Alfa Bank wrote. "Severstal" in the first quarter lost almost all of its profit (it decreased 370 times), half of EBITDA and received 40 billion rubles of negative cash flow; Magnitogorsk Iron and Steel Works at the end of last year reduced steelmaking to the minimum for 10 years and received a net loss of 14.9 billion rubles.
"The Russian steel industry is entering a difficult period, and this trend may continue for many years," says BCS analyst Kirill Chuiko. - Without further government support, there is a risk of a return to the conditions of the early 2000s."
The slowdown in the economy, which ended the quarter down for the first time in three years, has dropped demand for steel inside Russia by 15%. Steel exports have fallen by a third, or 10 million tons, due to sanctions since the war began.
"The production capacity of Russian steelmakers exceeds market demand by a factor of two," complained MMK CEO Pavel Shilyaev in March. He said that the company is reducing capacity utilization to 60%, has almost completely stopped investments and equipment repairs and is preparing to lay off 10% of management staff.
"Severstal" at the end of March announced a forced reduction in expenditures: the repair fund was cut by 15%, capital investments - by 24%. The company refused to index salaries, froze the hiring of new employees and suspended the strategic project for the production of iron ore pellets in Cherepovets.
According to Forbes' source, steel companies have started to switch to a part-time work week, laid off about 3,000 people, and are also putting blast furnaces into hot mothballing mode. At a meeting with the government in February, steelmakers asked for tax benefits, but the Finance Ministry refused.
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