In Q2 2018, steel output grew by 1% to 4.38 m t (+6% yoy); capacity utilization rate grew by 1 p.p. qoq to 99%. Group sales in Q2 2018 totaled 4.38 m t (+6% qoq; +4% yoy).

Q2 2018 highlights:

• Steel output grew by 1% to 4.38 m t driven by high capacity utilization at the NLMK Russia Long Products Division. The 6% yoy growth was associated with the increase in demand for Group products in its key markets.
• Group sales increased by 6% qoq to 4.38 m t due to the growth of flat steel sales in Russia and the US. The share of finished products in Group sales grew by 2 p.p. qoq to 62%. Sales grew by 4% yoy, driven by the growth of pig iron and slab sales.
• Group sales in home markets accounted for 62% (-1 p.p. qoq; -2 p.p. yoy) in total sales.

H1 2018 highlights:

• Steel output grew by 4% yoy, driven by increased demand in the Group’s sales markets.
• Group sales increased by 8% yoy to 8.53 m t due to growth of semi-finished product sales.
• Group sales in home markets accounted for 63% (flat yoy) in total sales.