NLMK: Steel Output up 1%, Sales Down 2% Y-o-Y in Q1 CY20
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NLMK Group today announced its Q1 operational results for the year CY'20. Total steel output of the company in the first quarter was recorded 4.2 MnT, up by 11% Q-o-Q and 1% Y-o-Y, following the completion of major repairs at NLMK Lipetsk BF and BOF operations in Q4 CY'19.
The group's total steel sales fell by 2% to 4.5 MnT on Y-o-Y basis. However, the same grew by 8% Q-o-Q, driven by the increase in slab sales volumes following the growth of steel output, and the increase in flat steel sales, due to low stock levels in Europe and an uptick in demand in the USA at the beginning of Q1.
--Sales to home markets grew by 4% Q-o-Q to 3 MnT, driven by the growth in the sale of semis used for manufacturing oil and gas pipes in Russia.
--Sales on export markets totalled 1.4 MnT, increased by 7% on Q-o-Q basis amid higher sales volumes of finished HVA products to Turkey and the EU.
| NLMK's Q1 CY'20 OPERATIONAL RESULTS | |||||
| Production (MnT) | Q1 CY'20 | Q4 CY'19 | Change | Q1 CY'19 | Change |
| Crude steel production (without NBH) | 4.171 | 3.749 | 11% | 4.128 | 1% |
| Crude steel production (with NBH) | 4.210 | 3.778 | 11% | 4.183 | 1% |
| Total consolidated sales (MnT) | 4.503 | 4.172 | 8% | 4.614 | -2% |
| Semi-finished steel | 1.754 | 1.425 | 23% | 1.779 | -1% |
| Finished steel | 2.749 | 2.747 | 0% | 2.835 | -3% |
NLMK Group is one of the largest steel producers in Russia, holding 23% share of the country's total steel production. The company's crude steel production in the year CY'19 was recorded 15.7 MnT.
