Report: Russia’s NLMK owner says weak ruble effect to fade soon

MOSCOW, Oct 28 (PRIME) -- The positive effect of a weak ruble for Russian metals producers will end by 2016, Vladimir Lisin, key shareholder of steelmaker Novolipetsk Steel (NLMK), told channel Rossiya 24 in an interview broadcast late Tuesday.

“I think that this year it (the effect of the ruble devaluation) will virtually be over. It means that local price growth will erase all income from swapping U.S. dollars and euros for rubles,” Lisin said.

NLMK imports about 50% of the equipment, which is why a weak ruble has some negative ramifications for the company as well, he said.

The metals market situation will probably deteriorate in October–December as compared with July–September “because demand is falling, because the markets are so weak,” Lisin said. Metals makers will have to tighten their belts, he said.

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