15 Oct 2019 09:00
Press release
15 October 2019
Q3 2019 and 9M 2019 NLMK GROUP TRADING UPDATE
NLMK Group (LSE: NLMK, MOEX: NLMK) has published today its Q3 2019 and 9M 2019* operating results. NLMK Group sales decreased by 6% qoq to 4 m t due to repairs at NLMK's Lipetsk site. The share of finished products grew by 4 p.p. qoq to 68%.
Q3 2019 highlights:
·; Steel output decreased by 6% qoq (-16% yoy) to 3.7 m t due to ongoing repairs at NLMK Lipetsk blast furnace (BF) and basic oxygen furnace (BOF) operations. With output down, sales volumes decreased by 6% qoq to 4 m t (-9% yoy) due to the decrease in semi-finished product sales. At the same time, the share of high-value added product sales grew by 3 p.p. qoq to 33% (+2 p.p. yoy).
·; Sales to "home" markets decreased by 6% qoq to 2.8 m t due to seasonal maintenance at NLMK Group's European companies. Compared to Q3 2018, sales grew by 2% yoy, supported by higher sales of slabs for the production of oil and gas pipes. The share of Group sales to "home" markets totalled 68% (-4 p.p. qoq; +4 p.p. yoy).
·; Sales to export markets totalled 1.3 m t (+9% qoq), supported by higher slab sales to third parties. With NLMK's European companies' slab needs down due to maintenance, slab sales were redirected to third party customers. Compared to Q3 2018, sales decreased by 18% yoy due to lower export sales of pig iron against the backdrop of repairs at NLMK Lipetsk and lower demand for billets.
9M 2019 highlights:
·; Steel output decreased by 9% yoy to 11.9 m t due to overhauls at NLMK Lipetsk BF and BOF operations in Q2-3 2019. Sales remained flat yoy at 12.9 m t, while the share of finished products increased by 1 p.p. to 64%. The share of HVA products also grew by 1 p.p. yoy to 30%.
·; Sales to "home" markets grew to 8.5 m t (+5% yoy) due to increased demand for long products and slabs for the production of oil and gas pipes on the Russian market. The Group's export sales decreased by 6% yoy to 4.5 m t.
IR contact info: Dmitry Kolomytsyn, CFA +7 (495) 504 0 504 ir@nlmk.com | Media contact info: Andrey Sogrin +7 (495) 504 0 504 sogrin_av@nlmk.com |
* Hereinafter, Q3 2019 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 USA.
NLMK Group's Q3 2019 operating performance
Steel output* decreased by 6% qoq (-16% yoy) to 3.73 m t, due to overhauls at NLMK Lipetsk BF and BOF operations, and the decrease in steel output at NLMK Russia Long Products due to low demand for billets on export markets.
Sales** decreased by 6% qoq (-9% yoy) to 4.02 m t due to lower sales of semi-finished products, including slabs to NBH, due to repairs at NLMK Lipetsk and lower demand from NLMK's European companies.
Sales mix: finished steel sales remained unchanged qoq at 2.73 m t, while their share in total sales increased by 4 p.p. qoq (+2 p.p. yoy) to 68%. The share of HVA products grew by 3 p.p. qoq (+2 p.p. yoy) to 33%. Sales of semi-finished steel to third parties grew by 6% qoq to 0.86 m t, driven by the growth of slab sales to third party customers due to the decrease in NBH slab needs. Slab deliveries to NBH decreased by 39% qoq (-21% yoy) to 0.43 m t (Appendix 2).
Sales to home markets decreased by 6% qoq (+2% yoy) to 2.82 m t, due mainly to the decrease in sales in the US (-6% qoq) to 0.55 m t and in the EU (-16% qoq) to 0.59 m t amid summer maintenance and the decrease in demand for finished products. Sales in Russia were down by 1% qoq (+4% yoy), due to the decrease in long product sales and lower demand for slabs used in the production of oil and gas pipes. (Appendix 1).
Sales to export markets grew by 9% qoq (-18% yoy) to 1.3 m t, driven by higher slab deliveries to third parties.
NLMK Group's 9M 2019 operating performance
Steel output* decreased by 9% yoy to 11.9 m t due to the overhauls at NLMK Lipetsk BF and BOF operations, and a decrease in steel output at NLMK Russia Long due to low demand for billets in export markets.
Sales** remained practically flat yoy at 12.9 m t.
Sales mix: finished steel sales grew by 2% yoy to 8.31 m t, driven by higher flat and long steel deliveries in H1 2019. Sales of HVA products increased by 2% yoy to 3.88 m t. The share of HVA products in the sales portfolio grew by 1 p.p. to 30%. Sales of semi-finished products to third parties remained flat yoy, while the share of slab sales increased. Slab deliveries to NBH dropped by 12% yoy to 1.58 m t due to lower demand for slabs in Q1 2019 associated with NLMK Clabecq restructuring and slab stock optimization at NLMK's European companies (Appendix 2).
Sales to home markets grew to 8.48 m t (+5% yoy), driven mainly by the growth of demand for finished products and for slabs for the production of oil and gas pipes in Russia. Sales in Russia grew by 11% yoy to 4.84 m t. NLMK's US sales declined by 3% yoy due to lower demand for hot-rolled steel. Sales of NLMK's European companies remained flat yoy (Appendix 14).
Sales to export markets decreased yoy by 6% to 4.5 m t due to the drop in pig iron and billet exports.
*with NBH; ** without NBH
Global prices:
Q3 2019
Average raw material prices in the global market:
·; Average coal prices in the global market went down by 16% qoq (-9% yoy) due to the seasonal weakening in demand in India and import restrictions in China. Average coal prices in Russia in dollar terms decreased in line with global trends by 16% qoq (-12% yoy).
·; Average iron ore prices grew by 1% qoq (+36% yoy). Having peaked in July, prices started to slide downwards due to the recovery in supply in Brazil and Australia, and the growth of production in China.
·; Scrap prices in the US dropped by 11% qoq (-27% yoy), driven by lower rolled steel prices on the domestic market and the reduction in demand in Turkey. In Russia, prices grew by 2% qoq (-9% yoy) amid increased demand ahead of the winter season.
Average steel product prices:
·; In Russia, average dollar prices for uncoated flat steel grew by 1-2% qoq (+2% yoy) due to seasonally strong demand and limited supply. Average dollar prices for rebar decreased by 2% qoq (-1% yoy), as Q2 saw outstripping price growth driven by proactive developer efforts ahead of changes to shared-equity construction regulations.
·; Export slab prices (FOB Black Sea) decreased by 11% qoq (-21% yoy) due to the drop in demand on export markets.
·; Flat steel prices in the US went down by 5-8% qoq (-26-35% yoy), pressured by the weakening in demand and the oversupply in the market.
·; In the EU countries, flat steel dollar prices fell by 3-6% qoq (-16-21% yoy) amid weak demand.
SEGMENTAL PERFORMANCE
NLMK RUSSIA FLAT PRODUCTS1
Q3 2019 performance
Steel output decreased by 5% qoq (-15% yoy) to 2.82 m t due to overhauls at NLMK Lipetsk's BF and BOF operations (Appendix 9).
Sales of the Segment dropped by 9% qoq (-13% yoy), following the drop in steel output (Appendix 2).
Sales mix: the share of finished steel in total sales increased to 52% (+7 p.p. qoq; +6 p.p. yoy). Finished steel sales were up by 3% qoq to 1.43 m t, driven mainly by the growth in demand for CRC and coated steels on the Russian market. In yoy terms, finished steel sales were down by 2%, due to the weakening in demand in Europe, the US, Asia and the Middle East. HVA product sales grew by 8% qoq to 0.87 m t. The 3% drop yoy was driven by lower demand for coated and electrical steels on export markets (Appendix 3).
Sales of semi-finished steel went down by 19% qoq (-22% yoy) to 1.34 m t, due mainly to lower slab sales to NLMK Group companies and to NBH following the shift to finished steel coupled with the decrease in total steel output. Semis sales to NLMK Group companies and to NBH decreased to 0.55 m t (-41% qoq; -43% yoy) due to the decrease in slab requirements at NLMK's European companies and discontinued slab deliveries to NLMK USA.
Sales markets: sales in Russia grew by 2% qoq (+14% yoy) to 1.19 m t, driven by the growth in demand for finished products (Appendix 3). Export sales declined by 16% qoq (-26% yoy) to 1.59 m t, due to lower pig iron sales to third parties and slab sales to NLMK Group companies and NBH. The share of the Segment's export sales reduced to 57% (-5 p.p. qoq; -10 p.p. yoy).
NLMK RUSSIA LONG2
Q3 2019 performance
Steel output decreased to 0.71 m t (-12% qoq; -20% yoy) due to the drop in demand for billets (Appendix 9).
Sales decreased by 3% qoq to 0.69 m t due to the continuing decline in billet sales (Appendix 4). The 26% yoy decline in sales was mainly associated with the decrease in export billet sales and the high Q3 2018 base, when stocks accumulated during the 2018 World Cup were sold off. Sales of finished long products decreased by 1% qoq to 0.63 m t due to the weakening in demand for sections. The share of finished steel is total sales was 91% (+2 p.p. qoq; +12 p.p. yoy).
Sales markets: sales in Russia accounted for 71% (-5 p.p. qoq and +9 p.p. yoy).
Export sales grew by 15% qoq to 0.2 m t, driven by new annual quotas being allocated for deliveries to Europe starting from 1 July 2019 and growth of rebar supplies to the CIS amid favourable price conditions. The 44% yoy decrease in exports was associated by the decrease in billet sales.
Billet sales in Russia dropped by 9% qoq due to a slowdown in the market following a period of active sales in the previous quarter driven by the introduction of new regulations aimed at discontinuing the shared-equity construction system. The 15% decrease in sales yoy was driven by the Q3 2018 high base.
Scrap: scrap sales were up by 7% qoq to 1.4 m t due to NLMK scrap stocking ahead of the winter months. Year-on-year, scrap sales were down by 4% due to the decrease in NLMK Kaluga needs following a downward revision of the production plan due to discontinued billet export. Scrap is sold mainly to the Group's companies (98%) (Appendix 4).
1 NLMK Russia Flat includes NLMK Lipetsk, VIZ-Steel, and Altai-Koks. Export sales are calculated including the corresponding share of trading companies.
2 NLMK Russia Long includes NLMK Ural, NLMK Metalware, NLMK Kaluga and scrap collecting facilities. Export long product sales are calculated
including the corresponding share of trading companies.
MINING AND PROCESSING OF RAW MATERIALS
Q3 2019 performance
Output of iron ore grew by 8% qoq to 4.84 m t due to changes in the maintenance schedule and improved base ore quality. (Appendix 12). Year-on-year, iron ore output grew by 4% yoy.
Pellet output totalled 1.76 m t (+2% qoq), driven by higher deliveries to NLMK Lipetsk. The +4% yoy output growth was driven by higher equipment productivity.
Sales of iron ore increased by 6% qoq to 4.78 m t (+4% yoy). This growth was driven by an increase in iron ore concentrate deliveries to third parties amid a temporary reduction in demand from NLMK (Appendix 5). Iron ore concentrate sales to third parties in Q3 2019 totalled 0.36 m t.
NLMK USA3
Q3 2019 performance
Sales dropped by 6% qoq (-7% yoy) to 0.55 m t due to the decrease in HRC sales driven by the drop in demand from the tube and pipe sector and the decrease in HDG shipments against the backdrop of a slowdown in demand from the construction sector (Appendix 6).
NLMK DANSTEEL
Q3 2019 performance
Sales of plates were down by 14% qoq to 0.12 m t due to planned maintenance (Appendix 7).
JOINT VENTURE - NLMK Belgium Holdings (NBH)4
Q3 2019 performance
NBH sales were down by 13% qoq to 0.54 m t due to planned summer maintenance (Appendix 8). The 14% growth of sales yoy was associated with no unplanned downtime.
Note: detailed data are provided in the Appendix and available in a separate excel sheet on the Company's website.
3 NLMK USA includes NLMK Indiana, NLMK Pennsylvania and Sharon Coating. Data for NLMK USA is presented in metric tonnes.
4 NBH assets include producers of plates - NLMK Clabecq (Belgium), NLMK Verona (Italy) - and producers of flat steel - NLMK La Louvière (Belgium) and NLMK Strasbourg (France).
Appendices
Appendix 1. NLMK Group operating highlights
Production, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Crude steel production (without NBH) | 3,703 | 3,940 | -6% | 4,377 | -15% | 11,771 | 12,971 | -9% |
Crude steel production (with NBH) | 3,733 | 3,992 | -6% | 4,421 | -16% | 11,908 | 13,129 | -9% |
Capacity utilization | 93% | 98% | -5 p.p. | 99% | -6 p.p. | 96% | 99% | -3 p.p. |
Sales, m t | ||||||||
Semi-finished steel 5 | 1,287 | 1,521 | -15% | 1,512 | -15% | 4,588 | 4,806 | -5% |
Finished steel | 2,728 | 2,747 | -1% | 2,906 | -6% | 8,309 | 8,142 | 2% |
Flat | 2,096 | 2,109 | -1% | 2,169 | -3% | 6,444 | 6,368 | 1% |
Longs and metalware | 0,633 | 0,638 | -1% | 0,737 | -14% | 1,866 | 1,774 | 5% |
Total consolidated sales | 4,015 | 4,268 | -6% | 4,418 | -9% | 12,897 | 12,948 | 0% |
Sales to home markets of the Group 6 | 70% | 71% | -1 p.p. | 63% | +7 p.p. | 65% | 63% | +2 p.p. |
Sales to external markets | 30% | 29% | +1 p.p. | 37% | -7 p.p. | 35% | 37% | -2 p.p. |
For information: slab sales to foreign subsidiaries and affiliates | 0,550 | 0,933 | -41% | 0,956 | -43% | 2,218 | 3,328 | -33% |
Segment sales | ||||||||
Russian Flat Products | 2,776 | 3,055 | -9% | 3,189 | -13% | 9,234 | 9,959 | -7% |
Russian Long Products | 0,693 | 0,715 | -3% | 0,934 | -26% | 2,176 | 2,344 | -7% |
Mining | 4,784 | 4,513 | 6% | 4,597 | 4% | 13,886 | 13,625 | 2% |
NLMK USA | 0,549 | 0,584 | -6% | 0,590 | -7% | 1,733 | 1,781 | -3% |
Dansteel | 0,118 | 0,137 | -14% | 0,121 | -3% | 0,401 | 0,400 | 0% |
For information: NBH Sales | 0,537 | 0,618 | -13% | 0,472 | 14% | 1,667 | 1,690 | -1% |
5 Including commercial pig iron, slabs and billets
6 Home markets: Russia for the Russian assets of NLMK Group, North America for NLMK USA and the EU market for NLMK Dansteel and NBH
Appendix 2. NLMK Russia Flat sales by product
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Pig iron | 0,054 | 0,156 | -65% | 0,145 | -63% | 0,257 | 0,610 | -58% |
Slabs incl. | 1,290 | 1,510 | -15% | 1,585 | -19% | 4,651 | 5,158 | -10% |
Slab sales to foreign subsidiaries and affiliates | 0,550 | 0,933 | -41% | 0,956 | -43% | 2,218 | 3,328 | -33% |
to NLMK USA, NLMK Dansteel | 0,119 | 0,224 | -47% | 0,415 | -71% | 0,637 | 1,527 | -58% |
to NBH | 0,430 | 0,709 | -39% | 0,542 | -21% | 1,580 | 1,801 | -12% |
Hot-rolled steel | 0,563 | 0,588 | -4% | 0,567 | -1% | 1,837 | 1,748 | 5% |
Cold-rolled steel | 0,415 | 0,388 | 7% | 0,389 | 7% | 1,205 | 1,068 | 13% |
Galvanized steel | 0,200 | 0,172 | 16% | 0,227 | -12% | 0,567 | 0,621 | -9% |
Pre-painted steel | 0,117 | 0,100 | 17% | 0,128 | -9% | 0,306 | 0,316 | -3% |
Dynamo steel | 0,075 | 0,068 | 10% | 0,079 | -6% | 0,203 | 0,228 | -11% |
Transformer steel | 0,063 | 0,074 | -15% | 0,069 | -9% | 0,208 | 0,210 | -1% |
incl. VIZ-Steel | 0,034 | 0,040 | -17% | 0,043 | -22% | 0,117 | 0,127 | -8% |
Total products | 2,776 | 3,055 | -9% | 3,189 | -13% | 9,234 | 9,959 | -7% |
Coke sales from Altai-Koks | 0,715 | 0,723 | -1% | 0,899 | -21% | 2,309 | 2,662 | -13% |
incl. to Novolipetsk | 0,442 | 0,498 | -11% | 0,719 | -38% | 1,593 | 2,074 | -23% |
Appendix 3. NLMK Russia Flat sales by region and product
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Russian market | 1,188 | 1,162 | 2% | 1,043 | 14% | 3,375 | 3,106 | 9% |
Semi-finished products | 0,208 | 0,262 | -21% | 0,096 | > 100% | 0,637 | 0,459 | 39% |
Hot-rolled steel | 0,380 | 0,380 | 0% | 0,358 | 6% | 1,134 | 1,070 | 6% |
Cold-rolled steel | 0,257 | 0,229 | 12% | 0,224 | 15% | 0,692 | 0,633 | 9% |
Galvanized steel | 0,194 | 0,165 | 18% | 0,212 | -8% | 0,526 | 0,558 | -6% |
Pre-painted steel | 0,116 | 0,098 | 18% | 0,127 | -8% | 0,302 | 0,311 | -3% |
Dynamo steel | 0,021 | 0,017 | 22% | 0,017 | 24% | 0,054 | 0,045 | 19% |
Transformer steel | 0,011 | 0,010 | 16% | 0,010 | 11% | 0,030 | 0,030 | 2% |
Export markets | 1,588 | 1,893 | -16% | 2,146 | -26% | 5,859 | 6,853 | -15% |
Semi-finished products | 1,136 | 1,403 | -19% | 1,634 | -30% | 4,271 | 5,309 | -20% |
Hot-rolled steel | 0,183 | 0,208 | -12% | 0,209 | -12% | 0,703 | 0,677 | 4% |
Cold-rolled steel | 0,158 | 0,158 | 0% | 0,165 | -4% | 0,513 | 0,435 | 18% |
Galvanized steel | 0,005 | 0,008 | -33% | 0,015 | -65% | 0,042 | 0,063 | -35% |
Pre-painted steel | 0,001 | 0,002 | -44% | 0,002 | -48% | 0,004 | 0,006 | -32% |
Dynamo steel | 0,054 | 0,051 | 5% | 0,062 | -14% | 0,149 | 0,183 | -18% |
Transformer steel | 0,051 | 0,064 | -20% | 0,059 | -13% | 0,177 | 0,180 | -1% |
Total sales | 2,776 | 3,055 | -9% | 3,189 | -13% | 9,234 | 9,959 | -7% |
Appendix 4. NLMK Russia Long sales by product
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Billet | 0,060 | 0,078 | -22% | 0,198 | -70% | 0,311 | 0,569 | -45% |
Rebar | 0,508 | 0,504 | 1% | 0,570 | -11% | 1,418 | 1,289 | 10% |
Sections | 0,001 | 0,009 | -94% | 0,022 | -98% | 0,035 | 0,055 | -36% |
Wire rod | 0,059 | 0,057 | 4% | 0,072 | -17% | 0,210 | 0,241 | -13% |
Metalware | 0,065 | 0,068 | -4% | 0,073 | -11% | 0,202 | 0,190 | 6% |
Total steel products | 0,693 | 0,715 | -3% | 0,934 | -26% | 2,176 | 2,344 | -7% |
Ferrous and non-ferrous scrap, incl. | 1,400 | 1,314 | 7% | 1,460 | -4% | 3,388 | 3,664 | -8% |
to NLMK Ural | 0,581 | 0,563 | 3% | 0,561 | 4% | 1,411 | 1,391 | 1% |
to NLMK Kaluga | 0,303 | 0,381 | -21% | 0,394 | -23% | 0,927 | 1,106 | -16% |
to Novolipetsk | 0,493 | 0,348 | 42% | 0,489 | 1% | 0,992 | 1,124 | -12% |
Appendix 5. Mining Division sales
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Iron ore concentrate | 2,763 | 2,549 | 8% | 2,507 | 10% | 7,899 | 7,419 | 6% |
incl. to Novolipetsk | 2,399 | 2,438 | -2% | 2,507 | -4% | 7,424 | 7,419 | 0% |
Pellets | 1,759 | 1,713 | 3% | 1,706 | 3% | 5,223 | 5,074 | 3% |
incl. to Novolipetsk | 1,759 | 1,713 | 3% | 1,706 | 3% | 5,223 | 5,074 | 3% |
Sinter ore | 0,262 | 0,250 | 5% | 0,384 | -32% | 0,763 | 1,132 | -33% |
incl. to Novolipetsk | 0,262 | 0,250 | 5% | 0,384 | -32% | 0,763 | 1,132 | -33% |
Appendix 6. NLMK USA sales
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Hot-rolled steel | 0,289 | 0,313 | -8% | 0,309 | -6% | 0,933 | 0,997 | -6% |
Cold-rolled steel | 0,118 | 0,110 | 7% | 0,128 | -7% | 0,345 | 0,380 | -9% |
Galvanized steel | 0,138 | 0,158 | -13% | 0,152 | -9% | 0,449 | 0,399 | 12% |
Total NLMK USA 7 | 0,549 | 0,584 | -6% | 0,590 | -7% | 1,733 | 1,781 | -3% |
7 NLMK USA also sells non-significant volumes of merchant slabs not included into total rolled steel sales. In 3Q 2019 slab sales totaled 2,600 t.
Appendix 7. DanSteel sales
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Thick plates | 0,118 | 0,137 | -14% | 0,121 | -3% | 0,401 | 0,400 | 0% |
Appendix 8. NBH (associated companies) sales
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Hot-rolled steel | 0,321 | 0,356 | -10% | 0,240 | 33% | 0,959 | 0,851 | 13% |
Cold-rolled steel | 0,006 | 0,013 | -57% | 0,008 | -33% | 0,030 | 0,027 | 10% |
Coated steel | 0,080 | 0,079 | 2% | 0,067 | 20% | 0,233 | 0,236 | -1% |
Total flat steel | 0,407 | 0,448 | -9% | 0,316 | 29% | 1,223 | 1,114 | 10% |
Semi-finished (ingots) | 0,011 | 0,017 | -37% | 0,013 | -20% | 0,045 | 0,053 | -14% |
Thick plates | 0,119 | 0,152 | -22% | 0,142 | -16% | 0,399 | 0,523 | -24% |
Total steel products | 0,537 | 0,618 | -13% | 0,472 | 14% | 1,667 | 1,690 | -1% |
Appendix 9. NLMK Group steel output
Production, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Lipetsk site | 2,818 | 2,952 | -5% | 3,320 | -15% | 9,035 | 9,972 | -9% |
NLMK Long Products | 0,708 | 0,802 | -12% | 0,885 | -20% | 2,203 | 2,482 | -11% |
incl. NLMK Kaluga | 0,256 | 0,349 | -27% | 0,376 | -32% | 0,881 | 1,076 | -18% |
NLMK Indiana (NLMK USA) | 0,176 | 0,185 | -5% | 0,172 | 3% | 0,533 | 0,517 | 3% |
NLMK Group (without NBH) | 3,703 | 3,940 | -6% | 4,377 | -15% | 11,771 | 12,971 | -9% |
for information | ||||||||
NBH, NLMK Europe (EAF) | 0,030 | 0,052 | -43% | 0,044 | -33% | 0,137 | 0,158 | -13% |
NLMK Group (with NBH) | 3,733 | 3,992 | -6% | 4,421 | -16% | 11,908 | 13,129 | -9% |
Appendix 10. NLMK Group steel product output (without NBH)
Production, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Merchant pig iron | 0,076 | 0,107 | -29% | 0,211 | -64% | 0,268 | 0,548 | -51% |
Merchant slabs | 1,095 | 1,171 | -6% | 1,361 | -20% | 3,655 | 3,714 | -2% |
Flat steel | 2,071 | 2,129 | -3% | 2,088 | -1% | 6,331 | 6,479 | -2% |
Merchant billets | 0,011 | 0,127 | -91% | 0,226 | -95% | 0,228 | 0,563 | -60% |
Long products | 0,587 | 0,585 | 0% | 0,577 | 2% | 1,694 | 1,651 | 3% |
Metalware | 0,066 | 0,070 | -5% | 0,069 | -4% | 0,207 | 0,197 | 5% |
Total products | 3,907 | 4,189 | -7% | 4,532 | -14% | 12,382 | 13,152 | -6% |
Appendix 11. NLMK Russia Flat steel product output
Production, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Merchant pig iron | 0,076 | 0,107 | -29% | 0,211 | -64% | 0,268 | 0,548 | -51% |
Merchant slabs | 1,215 | 1,394 | -13% | 1,776 | -32% | 4,292 | 5,241 | -18% |
Hot-rolled steel | 0,591 | 0,606 | -2% | 0,547 | 8% | 1,815 | 1,823 | 0% |
Cold-rolled steel | 0,410 | 0,383 | 7% | 0,403 | 2% | 1,187 | 1,156 | 3% |
Galvanized steel | 0,207 | 0,188 | 10% | 0,210 | -1% | 0,585 | 0,633 | -8% |
Pre-painted steel | 0,095 | 0,114 | -16% | 0,105 | -9% | 0,312 | 0,308 | 1% |
Dynamo steel | 0,064 | 0,063 | 1% | 0,076 | -16% | 0,192 | 0,226 | -15% |
Transformer steel | 0,058 | 0,071 | -19% | 0,069 | -15% | 0,201 | 0,209 | -4% |
Total steel products | 2,716 | 2,926 | -7% | 3,396 | -20% | 8,852 | 10,143 | -13% |
Appendix 12. Output of the main raw materials
Production, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Coke | 1,310 | 1,332 | -2% | 1,537 | -15% | 4,082 | 4,507 | -9% |
Novolipetsk | 0,616 | 0,605 | 2% | 0,617 | 0% | 1,817 | 1,824 | 0% |
Altai-Koks | 0,694 | 0,727 | -5% | 0,920 | -25% | 2,265 | 2,683 | -16% |
Iron ore | 4,844 | 4,506 | 8% | 4,635 | 4% | 13,895 | 13,593 | 2% |
Iron ore concentrate | 2,831 | 2,525 | 12% | 2,558 | 11% | 7,921 | 7,426 | 7% |
Sinter ore | 0,250 | 0,250 | 0% | 0,375 | -33% | 0,750 | 1,126 | -33% |
Pellets | 1,763 | 1,731 | 2% | 1,702 | 4% | 5,224 | 5,041 | 4% |
Scrap | 0,709 | 0,673 | 5% | 0,725 | -2% | 1,726 | 1,728 | 0% |
Appendix 13. NLMK Group steel product sales (without NBH)
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Semi-finished | 1,287 | 1,521 | -15% | 1,512 | -15% | 4,588 | 4,806 | -5% |
Pig iron | 0,054 | 0,156 | -65% | 0,142 | -62% | 0,257 | 0,601 | -57% |
Slabs | 1,173 | 1,288 | -9% | 1,172 | 0% | 4,020 | 3,635 | 11% |
Billet | 0,060 | 0,078 | -22% | 0,198 | -70% | 0,311 | 0,569 | -45% |
Flat steel | 2,096 | 2,109 | -1% | 2,169 | -3% | 6,444 | 6,368 | 1% |
Plate | 0,118 | 0,137 | -14% | 0,121 | -3% | 0,401 | 0,400 | 0% |
Hot-rolled steel | 0,852 | 0,901 | -5% | 0,875 | -3% | 2,769 | 2,744 | 1% |
Cold-rolled steel | 0,533 | 0,498 | 7% | 0,516 | 3% | 1,540 | 1,448 | 6% |
Galvanized steel | 0,338 | 0,331 | 2% | 0,379 | -11% | 1,017 | 1,021 | 0% |
Pre-painted steel | 0,117 | 0,100 | 17% | 0,128 | -9% | 0,306 | 0,316 | -3% |
Transformer steel | 0,063 | 0,074 | -15% | 0,069 | -9% | 0,208 | 0,210 | -1% |
Dynamo steel | 0,075 | 0,068 | 10% | 0,079 | -6% | 0,203 | 0,228 | -11% |
Long products | 0,633 | 0,638 | -1% | 0,737 | -14% | 1,866 | 1,774 | 5% |
Long | 0,568 | 0,570 | 0% | 0,664 | -15% | 1,663 | 1,584 | 5% |
Metalware | 0,065 | 0,068 | -4% | 0,073 | -11% | 0,202 | 0,190 | 6% |
Total steel products | 4,015 | 4,268 | -6% | 4,418 | -9% | 12,897 | 12,948 | 0% |
Appendix 14. NLMK Group home and export steel product sales (with NBH)
Sales, m t | Q3 2019 | Q2 2019 | QoQ | Q3 2018 | YoY | 9M 2019 | 9M 2018 | YoY |
Home | 2,819 | 2,986 | -6% | 2,762 | 2% | 8,479 | 8,053 | 5% |
Russia | 1,682 | 1,704 | -1% | 1,618 | 4% | 4,837 | 4,366 | 11% |
USA | 0,549 | 0,584 | -6% | 0,590 | -7% | 1,733 | 1,781 | -3% |
EU | 0,589 | 0,698 | -16% | 0,554 | 6% | 1,909 | 1,906 | 0% |
Export | 1,303 | 1,190 | 9% | 1,584 | -18% | 4,504 | 4,777 | -6% |
Total steel products | 4,122 | 4,176 | -1% | 4,346 | -5% | 12,984 | 12,829 | 1% |