Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

NLMK Grouip is reducing its investments this year from its earlier estimate of $1.1-1.2bn to $900-950mn because of complications arising from the COVID-19 pandemic. 


Not only has the ruble devalued but project launches have been delayed due to the economic uncertainities arising from the pandemic, NLMK indicated in its Q1 2020 earnings report.


The company’s crude steel production reached 4,171kt (4.2mn mt) in Q1 2020, showing marginal change from the 4,128kt it produced during the same quarter last year. NLMK also produced more crude steel in Q1 than it did in Q4 2019, when output totaled 3,749kt.


NLMK’s finished product output in Q1 2020 rose to 2,834kt from 2,717kt during the corresponding period in 2019, and also increased from the 2,642kt produced during the previous quarter.


Coke production totaled 1,538kt in Q1 2020, increasing slightly from 1,531kt produced in Q1 2019, and also over the 1,487kt it produced in Q4 2019.


The company exported 728kt of semi-finished products last quarter, decreasing by 38pc from the 1,166kt shipped in Q1 2019, but almost flat from the 726kt shipped in Q4 2019. Flat product shipments declined by 38pc in Q1 2020 to 438kt from 635kt during the same period a year ago, but increased by 15pc from the 381kt it exported during the fourth quarter of 2019.


The firm shipped 1,302kt of long products last quarter, a drop of 22pc from 174kt exported in Q1 2019, and a 2pc decline from 138kt shipped in Q4 2019.


The company’s gross profit grew in Q1 2020 to $767mn from $622mn during the previous quarter.

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