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% |
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website of
NLMK. |