NLMK Group (LSE: NLMK, MOEX: NLMK) in Q2 2021 increased its sales by 11% qoq to 4.3 m t supported by a 5% qoq production growth. Sales to the Russian market increased by 8% qoq to 1.8 m t (+26% yoy).

Q2 2021 highlights:

• Steel output increased by 5% qoq to 4.6 m t (+19% yoy) due to NLMK equipment ramp-up after the overhaul. 
• Sales increased by 11% qoq to 4.3 m t (-1% yoy) amid an increase in sales to the Russian market (+8% qoq; +26% yoy), as well as an increase in the supply of slabs and pig iron to export markets. Sales of semi-finished products to third parties increased by 57% qoq mainly due to the shipment of slabs; sales of finished products increased by 1% qoq to 2.7 m t (+12% yoy) amid a recovery in demand in key markets.
• Sales in the ‘home’ markets totalled 2.8 m t (+1% qoq; +19% yoy).
• Sales in export markets increased by 20% qoq to 1.4 m t (-30% yoy).

6M 2021 highlights:

• Steel output increased by 11% yoy to 9 m t.
• Sales totalled 8.2 m t (-7% yoy) with an increase in slab shipments to NLMK USA amid a strong consumption trend in the region.
• Sales in the ‘home’ markets increased by 3% yoy to 5.5 m t, mainly due to shipments to the Russian market (+9% yoy).
• Sales in export markets decreased by 23% yoy to 2.6 m t due to the high base effect. Volumes in H1 2020 were redistributed in favour of exports due to weak demand in Russia during quarantine restrictions.