NLMK Group (LSE: NLMK, MOEX: NLMK) is pleased to announce that in 6M 2020 its sales totalled 8.9 m t (flat yoy). Q2 sales grew by 2% yoy to 4.4 m t (-3% qoq).
Q2 2020 highlights
NLMK Group steel output and sales were impacted by declining demand in its traditional sales markets due to the COVID-19 pandemic.
Steel output declined by 8% qoq (-3% yoy) to 3.9 m t, due to lower utilization rates at NLMK Russia Long Products and NLMK USA. Towards the end of the quarter capacity utilization in the long products segment began to recover, reaching 89% in June. Capacity utilization rates at NLMK's European companies and NLMK USA remain low (66% and 50% in June, respectively).
Sales grew by 2% yoy to 4.4 m t due to higher slab and pig iron exports; Q2 2019 saw overhauls at NLMK Lipetsk BF and BOF operations. Quarter on quarter, sales declined by 3%.
Sales in export markets grew to 2 m t (+51% qoq; +71% yoy), due to deliveries being redistributed to the Asian market amid lower demand in other sales markets in April and May. Exports of semi-finished products and finished rolled products increased by 76% and 22% qoq, respectively (+137% yoy and +17% yoy).
NLMK Group sales to 'home' markets declined by 24% qoq (-23% yoy) to 2.31 m t.
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Hereinafter, Q2 2020 and 6M 2020 output and sales figures are preliminary and can by updated. Hereinafter, NLMK Group steel output and sales on 'home' markets are shown taking into account NBH performance. Product sales are shown without taking into account NBH performance. Sales to NLMK Group's 'home' markets are understood to be sales by NLMK Group companies in the regions where the products are produced in Russia, the EU, and the US.
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