Q1 2018 NLMK Group Trading update
In Q1 2018, steel output totaled 4.33 m t, flat qoq (+3% yoy). Capacity utilization rate grew by 3 p.p. to 99%. Group sales in Q1 2018 totaled 4.15 m t, which is 13% higher than in Q1 2017 (-5% qoq).
Q1 2018 highlights:
- Steel output remained largely flat qoq. The 3% growth yoy to 4.33 m t was driven by high capacity utilization at NLMK Lipetsk and growth of output at NLMK Russia Long.
- Group sales decreased by 5% qoq to 4.15 m t due to growth in slab sales to captive rolling facilities for further processing (+32% qoq to 600,000 t) and the seasonal weakening in demand in Russia.
- Sales grew by 13% yoy, driven by the growth in demand in NLMK’s home markets in Russia and the EU, and the increase in slab sales on the global market.
- Group sales in home markets accounted for 62% (-2 p.p. qoq and flat yoy) of total sales.
* Hereinafter, Q1 output and sales data is preliminary and can be updated. Hereinafter NLMK Group steel output and sales by market are shown taking into account NBH performance. Sales by product are shown without taking into account NBH performance. Sales to NLMK Group’s home markets are understood to be sales by NLMK Group companies in the regions where the products are produced in Russia, the EU and the USA.
Subscribe for updates