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NLMK Group Trading Update for Q4 2019 and 2019

Steel News - Published on Tue, 21 Jan 2020

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Russian steel giant NLMK Group has published today its Q4 2019 and 12M 2019 operating results. Steel output increased by 1% QoQ to 3.8 million tonnes, following the completion of major repairs at NLMK Lipetsk blast furnace and steelmaking operations. NLMK Group sales grew by 4% QoQ to 4.2 million tonnes.

12M 2019 highlights:

Steel output decreased by 10% YoY to 15.7 million tonnes, due to major repairs at NLMK Lipetsk blast furnace and steelmaking operations. Sales volumes decreased to 17.1 million tonnes (-3% YoY), following the decrease in output.

Sales to 'home' markets grew to 11.4 million tonnes (+7% YoY), driven by growth of demand for finished flat steel and rebar in Russia. Russia accounted for 39% in Group sales (+6 p.p. YoY).

Sales to export markets decreased by 15% YoY to 5.8 million tonnes, due to a decrease in export sales of billets and lower pig iron sales amid major repairs at NLMK Lipetsk.

Q4 2019 highlights:

Steel output grew by 1% qoq to 3.8 million tonnes, driven by growth of production due to the completion of major repairs at NLMK Lipetsk BF and BOF operations. Steel output went down by 13% from Q4 2018.

Sales volumes grew by 4% QoQto 4.2 million tonnes, due to increased sales of pig iron.

Sales to 'home' markets grew by 1% QoQ to 2.9 million tonnes, due to higher sales of hot-rolled steel and long products in Russia. The share of Group sales in Russia totalled 43% (+1 p.p. QoQ).

Sales to export markets reached 1.3 million tonnes (+2% QoQ), as slab supplies were redirected to NBH.

Production, m tQ1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019QoQYoY
Crude steel production (without NBH)4.2694.3264.3774.3144.1283.9403.7143.749-6%-15%
Crude steel production (with NBH)4.3264.3824.4214.3644.1833.9923.7443.778-6%-15%
Capacity utilization (with NBH)99%99%99%98%96%98%94%89%-4 pp-5 pp
Sales, m t
Semi-finished steel 21.6431.6511.5122.0231.7791.5211.2871.425-15%-15%
Finished steel2.5032.7332.9062.6202.8352.7472.7282.747-1%-6%
Longs and metalware0.5560.4820.7370.6400.5950.6380.6320.674-1%-14%
Total consolidated sales16.44.1464.3844.4184.6434.6144.2684.0154.172-6%-9%
Sales to local markets of the Group 363%62%64%55%57%72%69%69%-3 pp+5 pp
Sales to external markets37%38%36%45%43%28%31%31%+3 pp-5 pp
For information: slab sales to subsidiaries and affiliates1.2541.1180.9560.9540.7350.9330.5500.851-41%-43%
Segment sales
NLMK Russia Flat3.3383.4333.1893.5573.4033.0552.7763.226-9%-13%
NLMK Russia Long0.7700.6390.9340.8410.7680.7150.6930.674-3%-26%
Raw material mining and processing4.5104.5184.5974.7514.5894.5134.7844.5606%4%
NLMK USA0.5530.6380.5900.5040.6010.5840.5490.472-6%-7%
For information: NBH Sales0.6400.5780.4720.5400.5130.6180.5370.518-13%14%

Sales, m tQ1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019QoQYoY
Pig iron0.2580.2010.1420.2950.0470.1560.0540.253-65%-62%
Flat steel1.9482.2512.1691.9802.2392.1092.0962.074-1%-3%
Hot-rolled steel0.8331.0360.8750.8271.0160.9010.8520.912-5%-3%
Cold-rolled steel0.4410.4910.5160.4760.5090.4980.5330.4737%3%
Galvanized steel0.3050.3360.3790.3250.3480.3310.3380.3312%-11%
Pre-painted steel0.0870.1010.1280.1110.0890.1000.1170.11317%-9%
Transformer steel0.0680.0730.0690.0700.0710.0740.0630.066-15%-9%
Dynamo steel0.0720.0770.0790.0530.0610.0680.0750.05010%-6%
Long products0.5560.4820.7370.6400.5950.6380.6320.674-1%-14%
Total steel products4.1464.3844.4184.6434.6144.2684.0154.172-6%-9%

Source :

Posted By : Rabi Wangkhem on Tue, 21 Jan 2020
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