Q2 2019 highlights
Steel output decreased by 5% qoq to 4 m t due to the launch of overhauls
at NLMK Lipetsk blast furnace (BF) and basic oxygen furnace (BOF)
operations. A 9% yoy steel output reduction is also attributable to this
factor.
Sales declined by 7% qoq to 4.3 m t (-3% yoy), driven mainly by reduced
output and sales of commercial slabs and billets. This resulted in a 2
p.p. qoq increase in the share of HVA products in total sales volume (+1
p.p. yoy).
Sales to “home” markets grew by 11% qoq (+12% yoy) to 3 m t, supported
by the seasonal growth in demand for long and flat products in Russia.
The share of Group sales to “home” markets increased to 71% (+14 p.p.
qoq, +9 p.p. yoy).
Group sales to export markets dropped to 1.2 m t (-40% qoq; -26% yoy).
Export reduction was due to lower export sales of semi-finished products
against the backdrop of overhauls at NLMK Lipetsk.
6M 2019 highlights
Steel output decreased by 6% yoy to 8.2 m t due to the launch of
overhauls at NLMK Lipetsk BF and BOF operations.
Sales grew by 4% yoy to 8.9 m t, driven by higher demand for finished
steel on the Russian market, and due to destocking of inventories
accumulated at 2018 year-end at the beginning of the year. The share of
HVA products increased by 1 p.p. yoy.
Sales to “home” markets grew to 5.6 m t (+7% yoy) due to increased
demand for finished long products on the Russian market. The Group’s
export sales grew by 1% yoy to 3.2 m t.
NLMK Group KEY OPERATING DATA
Production, m t |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
Q1 2019 |
Q2 2019 |
QoQ |
YoY |
Crude steel production (without NBH) |
4.269 |
4.326 |
4.377 |
4.314 |
4.128 |
3.940 |
-5% |
-9% |
Crude steel production (with NBH) |
4.326 |
4.382 |
4.421 |
4.364 |
4.183 |
3.992 |
-5% |
-9% |
Capacity utilization (with NBH) |
99% |
99% |
99% |
98% |
96% |
98% |
+2 pp |
-2 pp |
Sales, m t |
Semi-finished steel |
1.643 |
1.651 |
1.512 |
2.023 |
1.779 |
1.521 |
-15% |
-8% |
Finished steel |
2.503 |
2.733 |
2.906 |
2.620 |
2.835 |
2.747 |
-3% |
1% |
Flat |
1.948 |
2.251 |
2.169 |
1.980 |
2.239 |
2.109 |
-6% |
-6% |
Longs and metalware |
0.556 |
0.482 |
0.737 |
0.640 |
0.595 |
0.638 |
7% |
32% |
Total consolidated sales |
4.146 |
4.384 |
4.418 |
4.643 |
4.614 |
4.268 |
-7% |
-3% |
Sales to local markets of the Group 3 |
62% |
62% |
63% |
54% |
56% |
71% |
+15 pp |
+9 pp |
Sales to external markets |
38% |
38% |
37% |
46% |
44% |
29% |
-15 pp |
-9 pp |
For information: slab sales to subsidiaries and affiliates |
1.254 |
1.118 |
0.956 |
0.954 |
0.735 |
0.933 |
27% |
-17% |
Segment sales |
NLMK Russia Flat |
3.338 |
3.433 |
3.189 |
3.557 |
3.403 |
3.055 |
-10% |
-11% |
NLMK Russia Long |
0.770 |
0.639 |
0.934 |
0.841 |
0.768 |
0.715 |
-7% |
12% |
Raw material mining and processing |
4.510 |
4.518 |
4.597 |
4.751 |
4.589 |
4.513 |
-2% |
0% |
NLMK USA |
0.553 |
0.638 |
0.590 |
0.504 |
0.601 |
0.584 |
-3% |
-8% |
Dansteel |
0.142 |
0.137 |
0.121 |
0.120 |
0.146 |
0.137 |
-6% |
0% |
For information: NBH Sales |
0.640 |
0.578 |
0.472 |
0.540 |
0.513 |
0.618 |
20% |
7% |
NLMK Group SALES
Sales, m t |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
Q1 2019 |
Q2 2019 |
QoQ |
YoY |
Semi-finished |
1.643 |
1.651 |
1.512 |
2.023 |
1.779 |
1.521 |
-15% |
-8% |
Pig iron |
0.258 |
0.201 |
0.142 |
0.295 |
0.047 |
0.156 |
230% |
-22% |
Slabs |
1.170 |
1.293 |
1.172 |
1.527 |
1.559 |
1.288 |
-17% |
0% |
Billet |
0.215 |
0.157 |
0.198 |
0.201 |
0.173 |
0.078 |
-55% |
-51% |
Flat steel |
1.948 |
2.251 |
2.169 |
1.980 |
2.239 |
2.109 |
-6% |
-6% |
Plate |
0.142 |
0.137 |
0.121 |
0.120 |
0.146 |
0.137 |
-6% |
0% |
Hot-rolled steel |
0.833 |
1.036 |
0.875 |
0.827 |
1.016 |
0.901 |
-11% |
-13% |
Cold-rolled steel |
0.441 |
0.491 |
0.516 |
0.476 |
0.509 |
0.498 |
-2% |
2% |
Galvanized steel |
0.305 |
0.336 |
0.379 |
0.325 |
0.348 |
0.331 |
-5% |
-2% |
Pre-painted steel |
0.087 |
0.101 |
0.128 |
0.111 |
0.089 |
0.100 |
12% |
-1% |
Transformer steel |
0.068 |
0.073 |
0.069 |
0.070 |
0.071 |
0.074 |
4% |
1% |
Dynamo steel |
0.072 |
0.077 |
0.079 |
0.053 |
0.061 |
0.068 |
12% |
-12% |
Long products |
0.556 |
0.482 |
0.737 |
0.640 |
0.595 |
0.638 |
7% |
32% |
Long |
0.494 |
0.426 |
0.664 |
0.578 |
0.526 |
0.570 |
8% |
34% |
Metalware |
0.062 |
0.056 |
0.073 |
0.062 |
0.069 |
0.068 |
-2% |
22% |
Total steel products |
4.146 |
4.384 |
4.418 |
4.643 |
4.614 |
4.268 |
-7% |
-3% |
Source from NLMK |