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Mar.29.2024 1USD=7.095RMB
  SteelHome >>Steel>>Market Info>>Special Studies
 
NLMK Announced Q1 2020 Operation Report

https://en.steelhome.com [SteelHome] 2020-04-21 15:22:30

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Q1 2020 highlights

Steel output increased by 11% qoq to 4.2 m t due to the completion of major repairs at NLMK Lipetsk BF and BOF operations in Q4 2019. Steel output was up by 1% yoy.

Sales grew by 8% qoq to 4.5 m t, due to the increase in the sales of both semi-finished and HVA products. Sales were down by 2% yoy due to a high base that was associated with the sale of previously accumulated stocks at the beginning of 2019.

Sales to home markets grew by 4% qoq to 3 m t, driven by the growth in the sale of semis used for manufacturing oil and gas pipes in Russia. Group sales to home markets accounted for 68% (-1 p.p. qoq) of total sales.

Sales on export markets totalled 1.4 m t (+7% qoq) amid higher sales volumes of finished HVA products to Turkey and the EU.

NLMK Group's Q1 2020 operating performance

Steel output grew by 11% qoq to 4.2 m t. The biggest contribution in absolute terms came from NLMK Russia Flat due to the completion of the first stage of capital repairs at NLMK Lipetsk BF and BOF operations in Q4 2019.

Sales grew by 8% qoq to 4.5 m t, driven by the increase in slab sales volumes following the growth of steel output, and the increase in flat steel sales, due to low stock levels in Europe and an uptick in demand in the USA at the beginning of Q1.

Sales mix: Finished steel sales totalled 2.7 m t (flat qoq), with an increase in the share of flat steel in the product mix. Sales of semi-finished steel to 3 rd parties grew by 13% qoq to 1 m t, driven by the increase in the sales of slabs used to manufacture oil and gas pipes, and higher billet and pig iron sales. Slab deliveries to NBH grew by 40% qoq to 0.7 m t amid restocking and an increase in the Segment’s sales in Q1 2020.

Sales to home markets grew by 4% qoq to 3 m t, driven by higher slab sales. Sales in Russia dropped by 2% qoq to 1.8 m t, due to the high base for long product sales in the previous quarter amid active destocking. Sales in the USA and EU grew by 14% and 15% qoq, respectively.

Sales to export markets grew by 7% qoq to 1.4 m t, supported by the increase in the share of finished products in the export mix.

NLMK Group operating highlights

Key Operating Data

Production, m t

Q4 2019

Q1 2020

QoQ

Q1 2019

Q1 2020

YoY

Crude steel production (without NBH)

3.749

4.171

11%

4.128

4.171

1%

Crude steel production (with NBH)

3.778

4.210

11%

4.183

4.210

1%

Capacity utilization (with NBH)

89%

93%

+4 pp

96%

93%

-3 pp

Sales, m t

 

 

 

 

 

 

Semi-finished steel 2

1.425

1.754

23%

1.779

1.754

-1%

Finished steel

2.747

2.749

0%

2.835

2.749

-3%

Flat

2.074

2.210

7%

2.239

2.210

-1%

Longs and metalware

0.674

0.539

-20%

0.595

0.539

-9%

Total consolidated sales

4.172

4.503

8%

4.614

4.503

-2%

Sales to local markets of the Group 3

69%

68%

-1 pp

57%

68%

+11 pp

Sales to external markets

31%

32%

+1 pp

43%

32%

-11 pp

For information: slab sales to subsidiaries and affiliates

0.851

0.970

14%

0.735

0.970

32%

Segment sales

 

 

 

 

 

 

NLMK Russia Flat

3.226

3.469

8%

3.403

3.469

2%

NLMK Russia Long

0.674

0.569

-16%

0.768

0.569

-26%

Raw material mining and processing

4.560

4.604

1%

4.589

4.604

0%

NLMK USA

0.472

0.539

14%

0.601

0.539

-10%

Dansteel

0.128

0.160

25%

0.146

0.160

10%

For information: NBH Sales

0.518

0.605

17%

0.513

0.605

18%

Note: Up to and including Q4 2013, NLMK Belgium Holdings (NBH) sales were part of the Group’s consolidated sales. Starting from Q4 2013, NBH sales are reflected separately. NBH includes thick plate producers NLMK Clabecq (Belgium), NLMK Verona (Italy) and flat product producers NLMK La Louvière (Belgium), NLMK Strasbourg (France).

1 Hereinafter Q1 2019 production and sales data is preliminary

2 Including merchant pig iron, slabs, billet.

3 Local markets: Russia for the Russian assets of NLMK Group, North America for NLMK USA and the EU market for NLMK Dansteel and NBH.

Crude steel production

Production, m t

Q4 2019

Q1 2020

QoQ

Q1 2019

Q1 2020

YoY

NLMK Group

3.749

4.171

11%

4.128

4.171

1%

Lipetsk plant

2.977

3.325

12%

3.264

3.325

2%

NLMK Russia Long

0.603

0.659

9%

0.693

0.659

-5%

   incl. NLMK Kaluga

0.215

0.256

19%

0.276

0.256

-7%

NLMK Indiana (NLMK USA)

0.169

0.188

11%

0.171

0.188

9%

for information

 

 

 

 

 

 

NBH, NLMK Europe (EAF) 10

0.028

0.039

39%

0.055

0.039

-29%

To view the full content of the presentation, please go to the official website of NLMK.


(To contact the reporter on this story: leo.ji@steelhome.cn or 86-555-2238932 18616060095)
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