Q3 2019 highlights:
·
Steel output decreased by 6% qoq (-16% yoy) to 3.7 m t due to ongoing
repairs at NLMK Lipetsk blast furnace (BF) and basic oxygen furnace
(BOF) operations. With output down, sales volumes decreased by 6% qoq to
4 m t (-9% yoy) due to the decrease in semi-finished product sales. At
the same time, the share of high-value added product sales grew by 3
p.p. qoq to 33% (+2 p.p. yoy).
·
Sales to “home” markets decreased by 6% qoq to 2.8 m t due to seasonal
maintenance at NLMK Group’s European companies. Compared to Q3 2018,
sales grew by 2% yoy, supported by higher sales ofslabs for the
production of oil and gas pipes. The share of Group sales to “home”
markets totalled 68% (-4 p.p. qoq; +4 p.p. yoy).
·
Sales to export markets totalled 1.3 m t (+9% qoq), supported by higher
slab sales to third parties. With NLMK’s European companies’ slab needs
down due to maintenance, slab sales were redirected to third party
customers. Compared to Q3 2018, sales decreased by 18% yoy due to lower
export sales of pig iron against the backdrop of repairs at NLMK Lipetsk
and lower demand for billets.
9M 2019 highlights:
·
Steel output decreased by 9% yoy to 11.9 m t due to overhauls at NLMK
Lipetsk BF and BOF operations in Q2-3 2019. Sales remained flat yoy at
12.9 m t, while the share of finished products increased by 1 p.p. to
64%. The share of HVA products also grew by 1 p.p. yoy to 30%.
·
Sales to “home” markets grew to 8.5 m t (+5% yoy) due to increased
demand for long products and slabs for the production of oil and gas
pipes on the Russian market. The Group’s export sales decreased by 6%
yoy to 4.5 m t.
NLMK Group KEY OPERATING DATA
Production, m t |
Q3 2018 |
Q1 2019 |
Q2 2019 |
Q3 2019 |
QoQ |
YoY |
Crude steel production (without NBH) |
4.377 |
4.128 |
3.940 |
3.703 |
-6% |
-15% |
Crude steel production (with NBH) |
4.421 |
4.183 |
3.992 |
3.733 |
-6% |
-16% |
Capacity utilization (with NBH) |
99% |
96% |
98% |
93% |
-4 pp |
-6 pp |
Sales, m t |
|
|
|
|
|
|
Semi-finished steel 2 |
1.512 |
1.779 |
1.521 |
1.287 |
-15% |
-15% |
Finished steel |
2.906 |
2.835 |
2.747 |
2.728 |
-1% |
-6% |
Flat |
2.169 |
2.239 |
2.109 |
2.096 |
-1% |
-3% |
Longs and metalware |
0.737 |
0.595 |
0.638 |
0.633 |
-1% |
-14% |
Total consolidated sales |
4.418 |
4.614 |
4.268 |
4.015 |
-6% |
-9% |
Sales to local markets of the Group 3 |
63% |
56% |
71% |
70% |
-1 pp |
+7 pp |
Sales to external markets |
37% |
44% |
29% |
30% |
+1 pp |
-7 pp |
For information: slab sales to subsidiaries and affiliates |
0.956 |
0.735 |
0.933 |
0.550 |
-41% |
-43% |
Segment sales |
|
|
|
|
|
|
NLMK Russia Flat |
3.189 |
3.403 |
3.055 |
2.776 |
-9% |
-13% |
NLMK Russia Long |
0.934 |
0.768 |
0.715 |
0.693 |
-3% |
-26% |
Raw material mining and processing |
4.597 |
4.589 |
4.513 |
4.784 |
6% |
4% |
NLMK USA |
0.590 |
0.601 |
0.584 |
0.549 |
-6% |
-7% |
Dansteel |
0.121 |
0.146 |
0.137 |
0.118 |
-14% |
-3% |
For information: NBH Sales |
0.472 |
0.513 |
0.618 |
0.537 |
-13% |
14% |
NLMK Group SALES
Sales, m t |
Q3 2018 |
Q1 2019 |
Q2 2019 |
Q3 2019 |
QoQ |
YoY |
Semi-finished |
1.512 |
1.779 |
1.521 |
1.287 |
-15% |
-15% |
Pig iron |
0.142 |
0.047 |
0.156 |
0.054 |
-65% |
-62% |
Slabs |
1.172 |
1.559 |
1.288 |
1.173 |
-9% |
0% |
Billet |
0.198 |
0.173 |
0.078 |
0.060 |
-22% |
-70% |
Flat steel |
2.169 |
2.239 |
2.109 |
2.096 |
-1% |
-3% |
Plate |
0.121 |
0.146 |
0.137 |
0.118 |
-14% |
-3% |
Hot-rolled steel |
0.875 |
1.016 |
0.901 |
0.852 |
-5% |
-3% |
Cold-rolled steel |
0.516 |
0.509 |
0.498 |
0.533 |
7% |
3% |
Galvanized steel |
0.379 |
0.348 |
0.331 |
0.338 |
2% |
-11% |
Pre-painted steel |
0.128 |
0.089 |
0.100 |
0.117 |
17% |
-9% |
Transformer steel |
0.069 |
0.071 |
0.074 |
0.063 |
-15% |
-9% |
Dynamo steel |
0.079 |
0.061 |
0.068 |
0.075 |
10% |
-6% |
Long products |
0.737 |
0.595 |
0.638 |
0.633 |
-1% |
-14% |
Long |
0.664 |
0.526 |
0.570 |
0.568 |
0% |
-15% |
Metalware |
0.073 |
0.069 |
0.068 |
0.065 |
-4% |
-11% |
Total steel products |
4.418 |
4.614 |
4.268 |
4.015 |
-6% |
-9% |
Source from
NLMK |
|