Steel makers in Russia, the world’s fourth-largest steel producing nation, are suffering from sharply lower global steel prices and weak domestic demand from the construction industry, auto manufacturers and other durable goods producers.

Earlier this month Novolipetsk Steel, announced a first-quarter net loss of $193.8 million, while in May Severstal , Russia’s largest producer, reported a $644 million loss.

Magnitogorsk Iron & Steel Works (MMK) became Russia’s third steel major to post a first-quarter net loss, reporting a worse-than-expected $110 million deficit on Thursday as forex and other matters hit the bottom line.

“The loss was bigger than expected because of some operating losses at the subsidiary level,” Troika Dialog analyst Sergei Donskoi said.

Analysts polled by Reuters had expected MMK to post a first-quarter net loss of $73.9 million.

Russia’s third-largest steel producer reduced its total debt to $1.69 billion as of March 31, while net debt stood at $775 million.

At the end of last year total debt was $1.73 billion, while net debt totalled $603 million.

This is one of the lowest debt levels in the Russian steel sector, where leading companies borrowed more than $30 billion to fund capex expansion and acquisitions during the pre-crisis boom.

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