NLMK’s Q2 steel output rose to 4.6mn mt, up by 5pc from Q1 and up by 19pc from the prior-year quarter on the ramp-up of production after the overhauling of equipment. Capacity utilization increased by one percentage point from the prior quarter to 96pc.
Sales volumes in Q2 increased to 4.3mn mt, up by 11pc from Q1, but down by 1pc from the prior year. The group sales in local markets accounted for 66pc of total sales, down from 70pc in Q1, while up from 53pc in Q2FY2020. Russian market sales rose by 8pc from Q1 and 26pc from the prior year.
Semi-finished steel sales rose to 1.6mn mt, an increase of 32pc from Q1 amid increased exports of slabs and pig iron. Finished steel sales inched higher by 1pc from the prior quarter to 2.7mn mt on demand recovery in key markets.
H1 highlights
- NLMK’s steel production rose to 9mn mt, up by 11pc from the prior-year period.
- Sales fell by 7pc to 8.2mn mt. The group recorded a higher shipment of slabs to NLMK USA to cater to robust demand in the region.
- Sales in local markets rose to 5.5mn mt, up by 3pc majorly due to increased shipments to the Russian market.
- Exports decreased by 23pc to 2.6mn mt due to a high base effect. In H1 2020, exports rose due to COVID-19 restriction in Russia.
| NLMK Group’s crude steel production | |||||
|---|---|---|---|---|---|
| Production (mn mt) | Q2 2021 | Q2 2020 | Change YoY | Q1 2021 | Change QoQ |
| NLMK Group | 4.523 | 3.809 | 19% | 4.307 | 5% |
| Lipetsk plant | 3.557 | 3.145 | 13% | 3.331 | 7% |
| NLMK Russia Long | 0.777 | 0.610 | 27% | 0.789 | -2% |
| incl. NLMK Kaluga | 0.310 | 0.272 | 14% | 0.333 | -7% |
| NLMK Indiana (NLMK USA) | 0.189 | 0.053 | 255% | 0.187 | 2% |
| NBH, NLMK Europe (EAF) | 0.060 | 0.046 | 30% | 0.059 | 2% |