Trading Statement

1 Feb 2006 15:34

OJSC Novolipetsk Steel01 February 2006 OJSC Novolipetsk Steel1 February 2006 NOVOLIPETSK STEEL (NLMK) RELEASES 2005 TRADING UPDATE OJSC Novolipetsk Steel (LSE: NLMK) today released its trading update for Q4 2005 and for the twelve months ended 31 December 2005.* The table below shows the production volume of NLMK's principal steel products for the periods indicated: Q4 ended Year ended December 31, December 31, Q4 2004 Q4 2005 Change 2004 2005 Change Amount Amount Amount (%) Amount Amount Amount (%) (in million of tonnes, except for percentages) Pig Iron 2.27 2.16 (0.12) (5.1) 8.99 7.89 (1.11) (12.3)Steel 2.21 2.28 0.07 3.2 9.12 8.47 (0.65) (7.2)Finished steel products 2.08 2.18 0.10 4.8 8.58 7.98 (0.60) (7.0)Slabs 1.01 1.00 (0.02) (1.8) 3.76 3.20 (0.56) (14.9)Rolled steel products 1.07 1.18 0.12 11.0 4.81 4.78 (0.04) (0.8)Hot-rolled steel 0.48 0.46 (0.02) (4.2) 1.98 2.04 0.06 2.9Cold-rolled steel 0.58 0.72 0.14 23.6 2.83 2.74 (0.09) (3.3) * All information on production volumes is preliminary and may be subject to change. Anton Bazulev, NLMK's spokesman, commented: "We are satisfied with our overall production performance. Despite asubstantial downturn in the global steel market, NLMK has achieved itsproduction targets, taken the opportunity to undertake equipment overhauls andmaintained production discipline. All these measures have helped to support oursolid margins. We remain on track to implement our production goals and furthertechnical upgrading targets in 2006. NLMK is well placed to achieve optimalresults on that strong basis in 2006". For further information: NLMK Anton Bazulev +7 495 915 1575 Financial Dynamics Jon Simmons +44 20 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange