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CSN Reports Results for Second Quarter of 2020

Steel News - Published on Thu, 30 Jul 2020

Image Source: CSN Coronavirus COVID19
Companhia Siderurgica Nacional announced its results for the second quarter of 2020 in Brazilian Reais. Net revenue in 2Q20 totaled R$6,221 million, 17% higher than 1Q20 and 10% lower YoY. The increase in sales in 2Q20 was mainly due to the recovery of production volumes and sales of iron ore compared to 1Q20. In 2Q20, the cost of products sold totaled R$4,378 million, 9% higher compared to 1Q20. Gross margin increased by 4.9 pp. compared to 1Q20, reaching 29.6% in 2Q20, due to improvement in steel prices and margin recovery in logistics and cement.

In 2Q20, slab production by CSN totaled 913 thousand tons, 3.3% higher than in 1Q20 even with the stoppage of BF#2 at the end of May, showing the good performance of BF#3 post revamp.

In 2Q20, total sales reached 1,003 thousand tons, 12% lower when compared to 1Q20, mainly due to the expected slowdown in the domestic market due to the pandemic, however partially offset by foreign markets' commercial opportunities with the exchange rate depreciation.

In 2Q20, steel volumes sold in the domestic market totaled 615 thousand tons, 20.7% lower than 1Q20 due to the pandemic, which had a major impact on the automotive and white goods sectors. Of this total, 555 thousand tons refer to flat steel and 59 thousand tons to long steel. According to data from the Brazil Steel Institute (lABr), apparent consumption based on the monthly average (April and May 2020), fell by 27.4% compared to 1Q20.

In the foreign market, sales in 2Q20 totaled 388 thousand tons, 7% higher than those made in the previous quarter, helping to mitigate the slowdown in the domestic market. During this period, 53 thousand tons were exported directly and 335 thousand tons were sold by subsidiaries abroad, 76 thousand tons by LLC, 191 thousand tons by SWT, 68 thousand tons by Lusosider.

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Posted By : Yogender Pancholi on Thu, 30 Jul 2020
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