NMLK Group’s H1 2020 sales were flat compared to the first six months of 2019, totaling 8.9mn mt. The company’s sales and steel output were negatively affected by COVID-19 during the period.
The steelmaker’s Q2 2020 sales increased by 2.2pc to 4.4mn mt compared to the same quarter a year ago, although, sales in the period declined by 3pc compared to Q1 2020. The second quarter’s sales were driven by a slight increase in higher slab and pig iron export sales.
The lower utilization rates at mills resulted in an 8pc decline in production to 3.9mn mt in Q2 2020 compared to the previous quarter. NLMK’s, capacity utilization began to recover towards the end of Q2 2020, reaching 89pc in late June because of improvements in the Russian division. The capacity utilization in the European and US divisions was at 66pc and 50pc, respectively, at the end of June.
NLMK Group’s sales to domestic home markets declined by 24pc to 2.31mn mt in Q2 2020 compared to the previous quarter. For the six-month period, domestic home market sales declined by 6pc to 5.3mn mt driven primarily by lower demand in the US market.
The company’s export sales increased by 51pc to 2mn mt in Q2 2020 compared to the previous quarter and rose 71pc compared to the same quarter a year ago. Most export growth was to Asian buyers amid lower demand in other sales markets in April and May. Export sales of semi-finished and finished rolled products increased by 17pc in Q2 2020 compared to the same quarter a year ago. Group export sales for the first six months in 2020 increased by 6pc to 3.4mn mt driven primarily by higher sales of semi-finished goods.