|
ММК Group: Consolidated results
|
(thousand tonnes) |
Q1 2019 |
Q4 2018 |
% |
Q1 2019 |
Q1 2018 |
% |
|
Finished products sales, of which: |
2,782 |
2,936 |
-5.2% |
2,782 |
2,828 |
-1.6% |
|
Long products |
329 |
356 |
-7.6% |
329 |
284 |
15.8% |
|
Flat hot-rolled products |
1,111 |
1,232 |
-9.8% |
1,111 |
1,199 |
-7.3% |
|
Thick plate (mill 5000) |
293 |
184 |
59.2% |
293 |
192 |
52.6% |
|
Flat cold-rolled products |
257 |
292 |
-12.0% |
257 |
338 |
-24.0% |
|
Downstream products, of which: |
793 |
872 |
-9.0% |
793 |
815 |
-2.7% |
|
Tin plate |
32 |
33 |
-3.0% |
32 |
36 |
-11.1% |
|
Galvanised steel |
414 |
449 |
-7.8% |
414 |
435 |
-4.8% |
|
Polymer-coated steel |
156 |
166 |
-6.0% |
156 |
152 |
2.6% |
|
Band |
35 |
34 |
2.9% |
35 |
37 |
-5.4% |
|
Formed section |
41 |
44 |
-6.8% |
41 |
35 |
17.1% |
|
Pipes |
11 |
15 |
-26.7% |
11 |
11 |
0.0% |
|
Metalware |
93 |
108 |
-13.9% |
93 |
95 |
-2.1% |
|
Other metal products |
11 |
24 |
-54.2% |
11 |
14 |
-21.4% |
|
HVA products |
1,342 |
1,349 |
-0.5% |
1,342 |
1,345 |
-0.2% |
|
Share of HVA products |
48.20% |
45.90% |
|
48.20% |
47.60% |
|
|
Coal concentrate production |
777 |
781 |
-0.5% |
777 |
666 |
16.7% |
|
Iron ore production |
716 |
816 |
-12.3% |
716 |
751 |
-4.7% |
Q1 2019 highlights vs. Q4 2018
MMK Group’s total sales of finished products in Q1 2019 totalled 2,782
thousand tonnes, down 5.2% quarter-on-quarter (q-o-q) or down 1.6%
year-on-year (y-o-y).
MMK Group’s sales of HVA products in Q1 2019 remained almost at the
level of the previous quarter and amounted to 1,342 thousand tonnes. The
share of HVA products in total sales increased to 48.2%.
MMK Coal’s coal concentrate production in Q1 2019 totalled 777 thousand
tonnes, almost flat q-o-q but up 16.7% y-o-y.
MMK Group highlights by key
segments PSJC MMK
|
(thousand tonnes) |
Q1 2019 |
Q4 2018 |
% |
Q1 2019 |
Q1 2018 |
% |
|
Pig Iron |
2,396 |
2,558 |
-6.30% |
2,396 |
2,404 |
-0.30% |
|
Crude Steel |
3,107 |
3,112 |
-0.20% |
3,107 |
3,147 |
-1.30% |
|
Finished products, of which: |
2,731 |
2,812 |
-2.90% |
2,731 |
2,830 |
-3.50% |
|
Long products |
457 |
423 |
8.00% |
457 |
427 |
7.00% |
|
Flat hot-rolled products |
1,180 |
1,316 |
-10.30% |
1,180 |
1,277 |
-7.60% |
|
HVA products, of which: |
1,095 |
1,073 |
2.00% |
1,095 |
1,126 |
-2.80% |
|
Thick plate (mill 5000) |
267 |
213 |
25.40% |
267 |
198 |
34.80% |
|
Flat cold-rolled products |
319 |
351 |
-9.10% |
319 |
377 |
-15.40% |
|
Downstream products, of which: |
508 |
509 |
-0.20% |
508 |
551 |
-7.80% |
|
Tin plate |
34 |
33 |
3.00% |
34 |
37 |
-8.10% |
|
Galvanised steel |
311 |
315 |
-1.30% |
311 |
330 |
-5.80% |
|
Polymer-coated steel |
81 |
73 |
11.00% |
81 |
91 |
-11.00% |
|
Band |
28 |
28 |
0% |
28 |
39 |
-28.20% |
|
Formed section |
40 |
42 |
-4.80% |
40 |
40 |
0% |
|
Pipes |
14 |
18 |
-22.20% |
14 |
14 |
0% |
|
Shipments by market: |
|
|
|
|
|
|
|
Russia + CIS |
2,442 |
2,187 |
11.70% |
2,442 |
2,225 |
9.70% |
|
Export |
290 |
625 |
-53.60% |
290 |
605 |
-52.10% |
|
(USD / tonne) |
Q1 2019 |
Q4 2018 |
% |
Q1 2019 |
Q1 2018 |
% |
|
Average price per tonne: |
578 |
579 |
-0.2% |
578 |
647 |
-10.7% |
|
Long products |
480 |
507 |
-5.3% |
480 |
566 |
-15.2% |
|
Flat hot-rolled products |
506 |
507 |
-0.2% |
506 |
582 |
-13.1% |
|
HVA products, of which: |
698 |
697 |
0.1% |
698 |
753 |
-7.3% |
|
Thick plate (mill 5000) |
712 |
646 |
10.2% |
712 |
843 |
-15.5% |
|
Flat cold-rolled products |
579 |
606 |
-4.5% |
579 |
628 |
-7.8% |
|
Downstream products, of which: |
765 |
780 |
-1.9% |
765 |
805 |
-5.0% |
|
Tin plate |
777 |
778 |
-0.1% |
777 |
833 |
-6.7% |
|
Galvanised steel |
742 |
759 |
-2.2% |
742 |
771 |
-3.8% |
|
Polymer-coated steel |
916 |
967 |
-5.3% |
916 |
965 |
-5.1% |
|
Band |
653 |
656 |
-0.5% |
653 |
684 |
-4.5% |
|
Formed section |
779 |
787 |
-1.0% |
779 |
851 |
-8.5% |
|
Pipes |
542 |
579 |
-6.4% |
542 |
687 |
-21.1% |
Pig iron output in Q1 2019 decreased by 6.3% q-o-q. This was due to the
beginning of the scheduled overhaul of the blast furnace No.7.
At the same time, the volume of steel output in Q1 2019 remained flat
q-o-q. The decrease in pig iron volumes was balanced by the higher share
of metal scrap in burden.
The volume of shipments in Q1 2019 decreased by 2.9% q-o-q, which is due
to the scheduled repairs of rolling equipment, the formation of stocks
of finished products in the Company’s warehouses during the season of
low business activity in the domestic market and due to calendar factor.
In Q1 2019, the domestic market saw an increase in demand for steel
products, associated with the beginning of the process of replenishment
of stocks in the warehouses of traders, and with the 3 growth of orders
from manufacturers of large diameter pipes. These trends allowed the
Company to increase shipments to the domestic market by 11.7% q-o-q (up
to 2,442 thousand tonnes), as a result, the share of shipments to the
domestic market exceeded 89%.
The volume of shipments of long products in Q1 2019 increased by 8.0%
q-o-q and amounted to 457 thousand tonnes. This growth was due to the
low base of Q4 2018, and the beginning of the process of formation of
pre-season stocks of rolled products for construction purposes in the
warehouses of the MMK Trading House.
The volume of shipments of hot-rolled products for Q1 2019 decreased by
10.3% q-o-q, which was due to the beginning of the reconstruction of
Mill 2500 under the current investment programme.
The volume of shipments of HVA products for Q1 2019 increased by 2.0%
q-o-q and amounted to 1,095 thousand tonnes. This growth is mainly due
to the increase in the shipments of thick plate and high capacity
utilisation rates of the equipment, producing downstream products.
The decrease in the volume of shipments of cold-rolled products for Q1
2019 by 9.1% q-o-q is mainly due to a decrease in sales to automakers,
who traditionally cut vehicles output at the beginning of the year.
In Q1 2019, the volume of shipments of Mill 5000 products increased by
more than 25% q-o-q and reached 267 thousand tonnes. This growth was
associated with the start of supply of steel for the production of large
diameter pipes as part of the implementation of large pipeline projects
by Gazprom.
The growth in the share of high-margin steel sheet for LDP production in
the structure of Mill 5000 products and the decrease in export shipments
allowed the Company to increase the average sales price for this type of
product by more than 10% q-o-q.
Despite the seasonally low demand for construction products, the volume
of shipments of galvanized steel in Q1 2019 remained almost at the level
of the previous quarter and shipments of rolled products with polymer
coatings increased by 12.3%. This growth was due to the seasonal process
of long-term storage stocks formation in the warehouses of the
independent traders and traders, which are part of MMK Group.
The average selling price, expressed in US dollars, for Q1 2019 remained
almost unchanged from the level of the previous quarter and amounted to
USD 578 per tonne. Maintaining the average price at a high level allowed
a significant increase in the share of sales to the domestic market,
characterized by a price premium to exports.
Lysvensky Metallurgical Plant
|
(thousand tonnes) |
Q1 2019 |
Q4 2018 |
% |
Q1 2019 |
Q1 2018 |
% |
|
Finished products, of which: |
60 |
55 |
9.1% |
60 |
46 |
30.4% |
|
Electro-galvanised steel (automotive sheet) |
1 |
2 |
-50.0% |
1 |
3 |
-66.6% |
|
Galvanised steel with polymer coating |
56 |
51 |
9.8% |
56 |
41 |
36.5% |
|
Galvanised steel with decorative coating (SteelArt) |
4 |
1 |
300.% |
4 |
3 |
33.3% |
Steel segment (Turkey)
|
(thousand tonnes) |
Q1 2019 |
Q4 2018 |
% |
Q1 2019 |
Q1 2018 |
% |
|
ММК Metalurji finished products, of which: |
176 |
202 |
-12.9% |
176 |
231 |
-23.8% |
|
Flat hot-rolled products |
7 |
2 |
250.0% |
7 |
27 |
-74.1% |
|
HVA products, of which: |
169 |
199 |
-15.0% |
169 |
204 |
-17.2% |
|
Galvanised stee |
129 |
157 |
-17.8% |
129 |
148 |
-12.8% |
|
Polymer-coated steel |
39 |
43 |
-9.3% |
39 |
56 |
-30.4% |
|
ММК Metalurji finished products from
ММК steel |
136 |
132 |
3.0% |
136 |
153 |
-11.1% |
Source from
MMK |
