NLMK Reports 4% YoY Increase in Steel Output in Q1 of 2021
Russian steel maker NLMK Group increased steel output by 12% QoQ % 4% YoY to 4.4 million tonnes in Q1 of 2021 with a post-overhaul increase in NLMK equipment productivity, as well as with the completion of planned maintenance at the Russia Long Products segment. However, consolidated sales declined by 7% QoQ & 13% YoY to 3.9 million tonnes driven by a decrease in commercial pig iron sales amid repairs at NLMK Lipetsk BF operations coupled with an increase in intragroup slab sales.
External sales decreased by 7% QoQ & 13% YoY to 3.9 million tonnes with the decrease in commercial pig iron sales against the backdrop of completed overhauls at one of NLMK Lipetsk blast furnaces, and due to recovering intragroup slab deliveries to NLMK USA to meet local demand for finished rolled products in stocks at the end of Q1. Additionally, stocks have piled up at the end of the quarter at the Black Sea ports due to unfavourable weather conditions; corresponding steel volumes will be sold in Q2 2021.
Sales on ‘home’ markets increased by 4% QoQ but decreased by 10% YoY to 2.7 million tonnes. Sales on export markets decreased to 1.2 million tonnes down 21% QoQ & 12% YoY with a decline in pig iron sales and an increase in intragroup slab deliveries.