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NLMK Russia Long Products Performance in 2019

Steel News - Published on Thu, 23 Jan 2020

Image Source: SteelGuru
12M 2019 performance - Steel output declined by 15% YoY to 2.8 million tonnes, due to lower demand for billets on export markets. Sales declined by 10% yoy to 2.9 million tonnes due to discontinued billet exports. At the same time, sales of finished long products increased by 4% YoY to 2.3 million tonnes amid high demand for rebar in Russia in Q2 2019. The share of finished goods in total sales reached 79% (+11 p.p. YoY). Sales in Russia accounted for 70% (+15 p.p. YoY) of total sales. Sales of long products in Russia grew by 15% YoY, driven by an uptick in sales in Q2 2019 associated with the introduction of new regulations aimed at transitioning from shared-equity construction. Export sales decreased by 41% YoY to 0.9 million tonnes amid lower billet sales. Scrap sales declined by 17% YoY to 4.3 million tonnes t, following a decrease in NLMK Lipetsk and NLMK Russia long requirements. Scrap was sold mainly to the Group's companies (98%)

Q4 2019 performance - Steel output declined by 16% QoQ to 0.6 million tonnes due to a decrease in the sales plan for billets and inventory optimization. Sales decreased by 3% QoQ to 0.7 million tonnes amid falling billet sales. Sales of finished steel increased by 6% qoq to 0.7 million tonnes. The share of finished products in total sales reached 100% (+9 p.p. QoQ). Russia accounted for 80% of total sales (+9 p.p. QoQ). Sales of long products in Russia grew by 9% QoQ due to an increase in rebar and section sales. Export sales decreased by 31% QoQ to 0.1 million tonnes due to discontinued billet exports. Scrap sales decreased by 36% QoQ to 0.9 million tonnes due to seasonally low scrap collection. Scrap was sold mainly to the Group's companies (97%)

Sales, m t Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019QoQYoY
Rebar 0.3870.3310.5700.4850.4060.5040.5080.5171%-11%
Sections 0.0160.0170.0220.0050.0260.0090.0010.019-94%-98%
Wire rod 0.0910.0790.0720.0890.0940.0570.0590.0614%-17%
Metalware 0.0620.0560.0730.0620.0690.0680.0650.077-5%-11%
Total steel products 0.7700.6390.9340.8410.7680.7150.6930.674-3%-26%
Ferrous and nonferrous scrap incl. 0.7121.4931.4601.4900.6741.3141.4000.8927%-4%
to NLMK Ural 0.2760.5540.5610.5650.2670.5630.5810.3583%4%
to NLMK Kaluga 0.2630.4480.3940.4370.2420.3810.3030.186-21%-23%
to Novolipetsk 0.1570.4770.4890.4690.1500.3480.4930.32542%1%

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Posted By : Rabi Wangkhem on Thu, 23 Jan 2020
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