Q4 2017 and 12M 2017 NLMK Group Trading update
In 2017, NLMK Group steel output increased by 3% yoy to 17.1 m t. Group steelmaking capacities were running at 98%. NLMK Group sales in 2017 grew to 16.5 m t, which is 3% higher than in 2016.
12M 2017 highlights:
- Steel output increased to 17.1 m t (+3% yoy) due to the growth in productivity of main equipment.
- Group sales grew by 3% yoy to 16.47 m t amid recovering demand in its home markets of Russia, Europe and the US, and growing demand in external markets.
- Sales of finished steel increased by 5% yoy to 10.8 m t, accounting for more than 65% in the Group’s total sales.
- Sales in home markets reached 10.75 m t (+4% yoy), mainly supported by the 21% yoy growth in sales in the US, and the 4% yoy growth in flat steel sales in Russia to 4.4 m t. NLMK Group sales in home markets accounted for 65% of total sales (flat yoy).
Q4 2017 highlights:
- Crude steel output grew by 2% yoy to 4.32 m t. A 2% qoq cutback was due to the seasonal slowdown in demand for long products, and planned maintenance.
- NLMK Group sales grew by 3% qoq to 4.4 m t due to the growth of sales in external markets against the backdrop of the seasonal slowdown in demand for finished steel in Russia.
- Growth of sales compared to Q4 2016 totalled 20% driven by increased demand for flat steel in Russia and the USA as well as by intensified sales of semi-finished products in external markets.
- NLMK Group sales in its home markets totalled 2.82 m t (-1% qoq and +19% yoy). Russian sales declined by 5% qoq (+26% yoy). NLMK Group sales in home markets accounted for 65% of total sales (-2 p.p. qoq and flat yoy).
* Hereinafter, Q4 and 12M output and sales data is preliminary and can be updated. Hereinafter NLMK Group steel output is shown taking into account NBH performance. Sales by products are shown without taking into account NBH performance. Sales to NLMK Group 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.
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