14 July 2017 NLMK Group

2Q 2017 NLMK Group Trading update

In Q2 2017, NLMK Group sales grew by 13% qoq and 5% yoy to 4.2 m t. Steel output** totaled 4.1 m t (-2% qoq), with facilities running at 98% capacity.

Q2 2017 highlights:

  • Group sales grew by 13% qoq to 4.15 m t (+5% yoy), driven by the seasonal uptick in sales of finished products in the Russian market.
  • Finished product sales increased by 19% to 2.90 m t (+12% yoy), driven by the growth  of sales by NLMK Russia Flat and NLMK Russia Long division, primarily in their ‘home markets’***. Additional factor in sales growth was delayed recognition of Q1 sales (please see page 2 for details).
  • Steel output totaled 4.14 m t (-2% qoq & -3% yoy) due to planned maintenance at NLMK Lipetsk, including the successful completion of activities to launch the pulverized coal injection (PCI) units at BF-6 and BF-7. Forecasted steel output for NLMK Group for 2017 remains at the level of 16.8 m t.
  • NLMK Group sales in ‘home markets’ grew by 17% qoq to 2.63 m t, driven by a 44% qoq & a 9% yoy increase in deliveries to Russian consumers. Sales to ‘home markets’ accounted for 64% (+2 p.p. qoq & -1 p.p. yoy) of Group sales.
  • In Q2 2017, Stoilensky Pelletizer reached its planned capacity of 6 m t of pellets per year following ramp-up.

* Hereinafter Q2 2017 & H1 2017 output and sales figures are preliminary and can be updated.
**Hereinafter NLMK Group steel output is shown taking into account NBH performance.
***Sales to NLMK Group home markets are understood to be sales by NLMK Group companies in the regions where the products are produced in Russia, the EU and the USA.


Babichenko Sergey

Head of PR

+7 (495) 504 05 04

Maria Simonova

Press Secretary

+7 (915) 322-62-25

Sergey Takhiev

Head of IR

+7 (495) 504 05 04

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