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.