The forecast relates to Q2 2020 Consolidated Financial Results under IFRS.
Q3 2020 outlook
- China: sequential demand improvement in manufacturing and automotive sectors as well as strong infrastructure activity will continue to support steel consumption
- Russia: the ease of restrictions and monetary policy support combined with state economic initiatives, including preferential mortgage rates as well as pent-up demand would keep domestic steel consumption solid
- Europe and USA: steel demand is expected to be below average seasonal levels as the pace of economic recovery remains slow. Future recovery is contingent on the absence of a second wave of COVID-19 and noticeable business disruptions (the case for all regions)
Q3 results outlook
- We expect a decrease in the Lipetsk site steel output to the level of the same period last year due to the start of the second stage of major overhauls at NLMK Lipetsk hot-end operations (Blast Furnace No. 4 and BOF No. 3). These projects are part of the Group’s upgrade programme, which will add 1 m t annually to the NLMK Lipetsk steel output.