News

14 April 2016

Q1 2016 NLMK Group Trading update

NLMK Group sales in Q1 2016 increased by 7% qoq to 4.0 mln tonnes. Steel production increased by 3% qoq to 4.0 mln tonnes. Capacity utilization rates at NLMK Group exceeded 90%.

Q1 2016 highlights:

  • Crude steel output increased to 4.0 m t (+3% qoq and +3% yoy) driven by higher production at Russian Long Products segment and at NLMK USA.
  • NLMK Group steelmaking capacities were running at 93% (+1 p.p. qoq and -1 p.p. yoy), including the Lipetsk site - 100%.
  • Group sales increased to 4.0 m t (+7% qoq and +2% yoy) driven by Russian Long Products and Foreign Rolled Products segments sales.
  • Market share of NLMK Group sales:
    • The share of sales in the home markets where the Group produces finished steel (hereinafter “the local markets”) increased to 53% (+2 p.p. qoq and +4 p.p. yoy)
    • The share of export sales to third parties (excluding sales to NBH), (hereinafter “the export markets”) decreased to 36% (-1 p.p. qoq and -3 p.p. yoy)
    • The share of sales to NBH totaled 11% (-1 p.p. qoq and yoy).
  • Finished steel sales increased to 2.53 m t (+20% qoq and +8% yoy): shipments of flat products grew by 19% qoq and 14% yoy while sales of long products and metalware grew by +24% qoq (-10% yoy).