Russia's NLMK to keep foreign footholds in face of global protectionism

(Recasts, adds quotes and strategy)

MOSCOW, Feb 20 (Reuters) - Russian steel producer NLMK plans to maintain its presence in key foreign markets and is considering expansion in India as it watches protectionism grow around the world.

The steelmaker reported strong 2017 financial results on Tuesday and said that the possible introduction of import curbs by the United States would be a serious shake-up for the global steel market.

But NLMK remains "on the winning side, for now", Chief (Taiwan OTC: 3345.TWO - news) Executive Oleg Bagrin told a news conference.

"There are a number of possible scenarios ... including the beginning of a general trade war of all with all. If the hardest line is taken, this would be a systemic shock for the whole market," Bagrin said.

The U.S. Commerce Department on Friday recommended that President Donald Trump impose steep curbs on steel and aluminum imports from China and other countries, ranging from global and country-specific tariffs to broad import quotas.

NLMK said it has no plans to leave the U.S. steel market, where it has a number of assets, but it has placed on hold a project to increase its U.S. rolling mill capacity until it has more information about the possible curbs.

"In an atmosphere of global protectionism and trade wars, our strategy reveals its advantages," said Grigory Fedorishin, NLMK senior vice president.

Fedorishin could become CEO when Bagrin steps down in March, a source close to the company told Reuters in January.

"Right now it is very important to be in consumer markets, the more local the better ... We will be strengthening that kind of presence," Fedorishin said.

The steelmaker said it sees potential for growth in India, where it has a service centre, and could invest between $100 million and $400 million there. It also cited the Middle East and North Africa, where it sells 20 percent of its output, as regions of particular interest.

NLMK, controlled by billionaire Vladimir Lisin, earlier reported a 37 percent jump in 2017 core earnings to $2.7 billion, their highest level since 2009, on the back of stronger steel prices and higher sales.

Along with other Russian steelmakers, NLMK benefited as output cuts in China, the world's biggest producer, took some of the edge off global oversupply and boosted prices.

Domestic demand for steel also rose last year and is widely projected to continue the trend in 2018, though NLMK on Tuesday gave an estimate of only 1-2 percent growth, with Bagrin saying the company felt "cramped" on the Russian market.

It had previously forecast demand growth at 5 percent, while rival Severstal has estimated growth at 3-4 percent.

NLMK's fourth-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) rose 51 percent to $786 million, beating the $734 million expected by analysts polled by Reuters.

Net (LSE: 0LN0.L - news) profit rose 39 percent to $428 million on revenue up 43 percent at $2.8 billion.

NLMK shares rose 1.6 percent in Moscow, outperforming a 0.6 percent gain for the MICEX index. (Reporting by Anastasia Lyrchikova; Writing by Polina Devitt and Polina Ivanova; Editing by Jason Neely and David Goodman)