NLMK Group (LSE: NLMK, MOEX: NLMK) sales grew by 3% yoy to 17.5 m t in 2020. Steel output increased by 1% yoy to 15.8 m t.

Q4 2020 highlights:

• Steel output grew by 1% qoq to 3.9 m t (+3% yoy) following the completion of the BOF overhauls at NLMK Lipetsk.
• Sales decreased by 5% qoq to 4.2 m t due to lower slab sales coupled with inventory growth associated with seasonally high traffic at ports at year-end, and lower sales of long products due to equipment upgrades. Year-on-year, sales grew by 1%, supported by higher demand for pig iron and billet.
• Sales on ‘home’ markets totalled 2.6 m t (-7% qoq; -10% yoy), amid lower steel product sales in Russia.
• Sales on export markets reduced to 1.6 m t (-14% qoq; +21% yoy) amid lower slab sales to third parties.

12M 2020 highlights:

• Steel output increased by 1% yoy to 15.8 m t.
• Sales grew by 3% yoy to 17.5 m t, supported by a three-fold yoy increase in pig iron sales to 1.5 m t, amid lower steel output during BOF overhauls at NLMK Lipetsk.
• Sales on ‘home’ markets reduced by 6% yoy to 10.7 m t, due mostly to lower shipment volumes on the US market and long product sales in Russia.
• Sales on export markets increased by 17% yoy to 6.8 m t, driven by higher exports of pig iron and billet.