NMLK Group produced 4.2mn mt of crude steel in Q1 FY2020 (Jan- March 2020), up marginally from 4.1mn mt produced a year ago. Production was up by 11pc compared to the prior quarter. The figures include production at NLMK Belgium. Steel output increased due to the completion of the first phase of repairs at NLMK Lipetsk. The group’s capacity utilization rate was 93pc compared to 96pc a year ago quarter, capacity utilization in the prior quarter was 89pc.
| NLMK Group steel output by company | |||||
| Production (mn mt) | Q1FY2020 | Q1FY2019 | Change Y-o-Y | Q4FY2019 | Change Q-o-Q |
| NLMK Lipetsk | 3.325 | 3.264 | 2% | 2.977 | 12% |
| NLMK Long Products | 0.659 | 0.693 | -5% | 0.603 | 9% |
| NLMK Indiana (NLMK USA) | 0.188 | 0.171 | 9% | 0.169 | 11% |
| NLMK Group (without NBH) | 4.171 | 4.128 | 1% | 3.749 | 11% |
| NBH, NLMK Europe (EAF) | 0.039 | 0.055 | -29% | 0.028 | 39% |
| NLMK Group (with NBH) | 4.21 | 4.183 | 1% | 3.778 | 11% |
In Q1FY2020, NLMK Group’s sales dipped by 2pc to 4.5mn mt from 4.6mn mt in Q12019 to higher base (inventory) in the prior year. Sales increased by 8pc compared to the prior quarter as sales of sales of semi-finished and high value-added products increased in Q1.
| NLMK Group output by product type | |||||
| Production (mn mt) | Q1FY2020 | Q1FY2019 | Change Y-o-Y | Q4FY2019 | Change Q-o-Q |
| Merchant pig iron | 0.342 | 0.085 | >100% | 0.254 | 34% |
| Merchant slabs | 1.413 | 1.389 | 2% | 1.066 | 33% |
| Flat steel | 2.221 | 2.129 | 4% | 2.058 | 8% |
| Merchant billets | 0.04 | 0.089 | -55% | 0.021 | 93% |
| Long products | 0.544 | 0.517 | 5% | 0.514 | 6% |
| Metalware | 0.068 | 0.071 | -4% | 0.07 | -3% |
| Total products | 4.628 | 4.281 | 8% | 3.983 | 16% |
Variety of trends were observed in global raw material and steel product prices in Q1. Prices increased in the first half of the quarter, boosted by increased demand and restocking. From mid-Q1, prices dipped for both raw materials and steel because of the impact of restrictions aimed at fighting the COVID-19 pandemic, according to the company’s production update.