Q3 and 9M 2021 NLMK Group Trading Update
NLMK Group (LSE: NLMK, MOEX: NLMK) today announces that its Q3 2021 sales totalled 4.1 m t (-4% qoq). Sales in export markets grew by 2% qoq to 1.4 m t amid stable demand.
Q3 2021 highlights:
- Steel output decreased by 15% qoq to 3.9 m t (+1% yoy) due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site in August and the subsequent repair works
- Sales were down by 4% qoq to 4.1 m t (-7% yoy) following a decrease in NLMK Lipetsk production output. Capacity utilization rates recovered once repairs were complete and reached 97% in September. Sales of semi-finished products to third parties grew by 1% qoq, due mainly to higher pig iron sales. Sales of finished products increased by 1% qoq to 2.7 m t (flat yoy) amid stable final demand in key markets.
- Sales in “home” markets totalled 2.8 m t (flat qoq and yoy).
- Sales in export markets grew by 2% qoq to 1.4 m t.
9M 2021 highlights:
- Steel output increased by 8% yoy to 12.9 m t as equipment ramped up to full capacity after upgrades at NLMK BF and BOF operations, and following output growth at NLMK Russia Long Products and NLMK USA.
- Sales totalled 12.4 m t (-7% yoy) amid resumed intragroup slab supplies from NLMK Lipetsk to NLMK USA (0.9 m t).
- Sales in “home” markets grew by 2% yoy to 8.3 m t, due mainly to increased demand on the US market (+23% yoy).
- Sales in export markets decreased by 23% yoy to 4.0 m t due to the high base of last year, when supplies were redistributed in favour of exports due to weak demand in Russia during lockdown limitations.
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