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NLMK Announces Q3 & 9M Trading Update

Steel News - Published on Wed, 16 Oct 2019

Image Source: Wikimedia
NLMK Group has published its Q3 2019 and 9M 2019 operating results. NLMK Group sales decreased by 6%QoQ to 4 million tonnes due to repairs at NLMK’s Lipetsk site. The share of finished products grew by 4 p.p. QoQ to 68%

Q3 2019 highlights:

1. Steel output decreased by 6% QoQ (-16% YoY) to 3.7 million tonne due to ongoing repairs at NLMK Lipetsk blast furnace and basic oxygen furnace operations. With output down, sales volumes decreased by 6% QoQ to 4 million tonne (-9% YoY) due to the decrease in semi-finished product sales. At the same time, the share of high-value added product sales grew by 3 p.p. QoQ to 33% (+2 p.p. YoY).

2. Sales to home markets decreased by 6% QoQ to 2.8 million tonne due to seasonal maintenance at NLMK Group’s European companies. Compared to Q3 2018, sales grew by 2% YoY, supported by higher sales of slabs for the production of oil and gas pipes. The share of Group sales to “home” markets totalled 68% (-4 p.p. QoQ; +4 p.p. YoY).

3. Sales to export markets totalled 1.3 m t (+9% QoQ), supported by higher slab sales to third parties. With NLMK’s European companies’ slab needs down due to maintenance, slab sales were redirected to third party customers. Compared to Q3 2018, sales decreased by 18% YoY due to lower export sales of pig iron against the backdrop of repairs at NLMK Lipetsk and lower demand for billets.

9M 2019 highlights:

1. Steel output decreased by 9% YoY to 11.9 million tonne due to overhauls at NLMK Lipetsk BF and BOF operations in Q2-3 2019. Sales remained flat YoY at 12.9 million tonne, while the share of finished products increased by 1 p.p. to 64%. The share of HVA products also grew by 1 p.p. YoY to 30%.

2. Sales to “home” markets grew to 8.5 million tonne (+5% YoY) due to increased demand for long products and slabs for the production of oil and gas pipes on the Russian market. The Group’s export sales decreased by 6% YoY to 4.5 million tonne.

Source :

Posted By : Amom Remju on Wed, 16 Oct 2019
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