Q1 2014 NLMK Group Trading update
Q1 2014 key operating highlights
- In Q1 2014 Group steelmaking capacity utilization rate remained at high level (92%). The utilization rate at the main plant (Novolipetsk) was 98%.
- NLMK Group crude steel production totaled 3.91 million t (-3.8% q-o-q). This reduction in steel production was related mainly to the reduction in Long Products Segment output (-7.5% q-o-q) due to the mastering of a new product.
- Q1 2014 Group sales jumped by 8.3% q-o-q to 3.867 m t driven by improved demand and restocking.
- Sales of rolled steel products went up by 11% q-o-q to 2.565 m t. The share of rolled steel sales in total sales was 66% (+1.4 p.p.).
- Sales to the Russian market went up by 6.1% q-o-q to 1.549 m t. Sales to other markets totaled 2.318 m t (+9.8% q-o-q), or 60% of total sales.
- Steel Segment sales jumped by 15.8% q-o-q to 3.163 m t driven by the significant increase in exports.
- Long Products Segment sales went up by 3.2% q-o-q to 0.653 m t supported by improved demand on the Russian market at the end of Q1.
- Foreign Rolled Products Segment sales increased by 3.5% q-o-q to 0.558 m t, including NLMK USA sales of 0.458 m t (+1.5% q-o-q).
Q2 output is expected to remain sequentially flat due to scheduled maintenance of the hot end operations at Novolipetsk.