Outlook

Q1 2021 outlook

Markets

• China: the Lunar New Year in the mid of the quarter coupled with increasing number of infections as well as seasonal factors to weigh on prices
• Russia: seasonal slow demand coupled with sufficient stocks in the supply chain might cap price dynamics until the spring construction season arrival in March-April
• The US, the EU: Q1’21 should be associated with strong price environment with lead times staying well above average. However, imposed lockdowns in the EU may lead to price moderation in the second half of the quarter

Q1 results outlook

• We expect that the higher equipment productivity following upgrades and its ramp-up to full capacity will enable an increase in NLMK Lipetsk’s steel output to 3.5 m t in Q1 2021, which is in line with goal of 14.2 m t of steel per year announced earlier.
• Global steel prices in January 2021 were at multi-year highs, driven by high demand for steel amid limited supply. Considering the price increase in late Q4 2020 and the sales recognition time gap, average sales prices in Q1 2021 will be higher qoq, which have a positive impact on our financial performance.