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NLMK update on Russian long operations in Q1 of 2019

Steel News - Published on Thu, 18 Apr 2019

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Steel output dropped by 16% QoQ to 0.69 million tonnes (-7% YoY), driven by a seasonally lower demand. Sales decreased by 9% QoQ (-1% YoY) to 0.76 million tonnes. In addition to seasonal factors, lower export margins of billets drove the decrease, but were partially offset by the sales of inventories accumulated in ports in December 2018. The share of finished steel sales totalled 77% (+1 p.p. QoQ and +5 p.p. YoY). The share of sales in Russia totalled 56% (flat QoQ and YoY). Driven by a seasonally lower demand from the construction industry, the quarter-on-quarter sales in Russia fell back by 10% to 0.43 million tonnes. Year-on-year, sales in Russia grew by 18% attributable to higher demand for rebar. Export sales dropped by 8% QoQ (-17% YoY) to 0.34 million tonnes due to lower volumes of billet sales.

Scrap sales were down 55% QoQ (-5% YoY) to 0.67 million tonnes due to seasonally lower demand of the Russian companies. Scrap is mainly sold to the Group's companies (98%).

Sales, m tQ1 2018Q4 2018Q1 2019QoQYoY
Wire rod0.0910.0890.0946.00%4.00%
Total steel products0.770.8410.768-9.00%0.00%
Ferrous and nonferrous scrap incl.0.7121.490.674-55.00%-5.00%
to NLMK Ural0.2760.5650.267-53.00%-3.00%
to NLMK Kaluga0.2630.4370.242-45.00%-8.00%
to Novolipetsk0.1570.4690.15-68.00%-4.00%

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Posted By : Rabi Wangkhem on Thu, 18 Apr 2019
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