Q2 2014 and H1 2014 NLMK Group Trading update
Q2 2014 highlights
- Group sales remained at the high level of the previous quarter and totaled 3.854 m t.
- Rolled product sales grew by 11.9% q-o-q to 2.774 m t; the share of rolled product sales in total sales was 72% (+8 p.p.). The highest growth was recorded for long product sales: +15.9% q-o-q and 45.6% y-o-y, reaching a record 0.568 m t.
- Sales to the Russian market grew by 12% q-o-q to 1.735 m t driven by the seasonal growth in demand for the Company’s products.
- In Q2 2014, Group steelmaking capacities were running at 94%; utilization rate at the main production site in Lipetsk was 98% 1.
- NLMK Group steel output fell to 3.774 m t (-3.5% q-o-q) due to repair activities and the mastering of the pulverized coal injection (PCI) technology at the blast furnace operations at the Lipetsk site. In Q3, this reduction is expected to be offset by an increase in steel output to 4 m t.
- Rolled product output increased by 26.8% q-o-q to 3.105 m t on the back of high demand both in the domestic and export markets. Semi-finished product output decreased by 12.7% q-o-q to 990,000 t.
- NLMK Group sales increased to 7.721 m t (+2.4% y-o-y). Sales to the Russian market grew by 20.3% y-o-y to 3.283 m t.
- NLMK Groups H1 2014 steel output increased to 7.682 m t (+2.7% y-o-y), driven mainly by the launch of NLMK Kaluga in mid-2013.
- Q3 steel output is expected to grow to 4 m t.