OJSCNovolipetsk Steel's crude steel production in the second quarterincreased 4% year over year to 4.2 million tonnes.

The company said July 14 that it achieved higher steeloutput across all operations as the steelmaking capacity utilization rates inthe quarter increased by 6 percentage points to 100%, on a yearly basis.

Total consolidated sales dropped 2% year over year to 3.9million tonnes, including a 4% fall to 1.4 million tonnes in the sales ofsemi-finished steel, and a 1% reduction in sales of finished steel.

Sales for Russian flat products and foreign rolled productsincreased 4% and 10%, respectively, while sales at the Russian long productsand mining segments fell 9% and 8%, respectively.

The company's iron ore concentrate production was up 2% yearover year to 3.9 million tonnes, and sinter ore production fell 3% quarter overquarter to 390,000 tonnes.

In the first half of the year, Novolipetsk's steel outputincreased 4% year over year to 8.2 million tonnes, with capacity utilizationrates climbing 3 percentage points to 97%.

The iron ore concentrate output increased 2% year over yearto 7.9 million tonnes on the back of operational efficiency programs andbeneficiation equipment upgrades.

Sales in the first half increased 1% year over year to 8.1million tonnes as flat steel sales in the Russian and international marketsgrew 10% on a yearly basis to 4.2 million tonnes.

The average steel product prices in the first half fell 5%to 20% year over year.