15 July 2020
Q2 and 6M 2020 NLMK Group Trading Update
NLMK Group (LSE: NLMK, MOEX: NLMK) is pleased to announce that in 6M 2020 its sales totalled 8.9 m t (flat yoy). Q2 sales grew by 2% yoy to 4.4 m t (-3% qoq).
Q2 2020 highlights:
- NLMK Group steel output and sales were impacted by declining demand in its traditional sales markets due to the COVID-19 pandemic.
- Steel output declined by 8% qoq (-3% yoy) to 3.9 m t, due to lower utilization rates at NLMK Russia Long Products and NLMK USA. Towards the end of the quarter capacity utilization in the long products segment began to recover, reaching 89% in June. Capacity utilization rates at NLMK’s European companies and NLMK USA remain low (66% and 50% in June, respectively).
- Sales grew by 2% yoy to 4.4 m t due to higher slab and pig iron exports; Q2 2019 saw overhauls at NLMK Lipetsk BF and BOF operations. Quarter on quarter, sales declined by 3%.
- Sales in export markets grew to 2 m t (+51% qoq; +71% yoy), due to deliveries being redistributed to the Asian market amid lower demand in other sales markets in April and May. Exports of semi-finished products and finished rolled products increased by 76% and 22% qoq, respectively (+137% yoy and +17% yoy).
- NLMK Group sales to ‘home’ markets declined by 24% qoq (-23% yoy) to 2.31 m t.
6M 2020 highlights:
- Steel output went down by 1% yoy to 8.1 m t.
- Sales totalled 8.9 m t (flat yoy).
- Group export sales increased by 6% yoy to 3.4 m t, supported by higher exports of semis.
- Sales to ‘home’ markets dropped by 6% yoy to 5.3 m t, due mainly to lower demand in the US market.