NLMK Reports Surge in Production & Sales in Apr-Jun Quarter
Russian steel maker NLMK Group announced that its sales increased by 11% QoQ & 26% YoY to 4.3 million tonnes in Q2 of 2021, supported by a 5% QoQ production growth to 4.6 million tonnes, up 19% YoY, due to NLMK equipment ramp-up after the overhaul. Sales to the Russian market increased by 8% QoQ to 1.8 million tonne, up 26% YoY, as well as an increase in the supply of slabs and pig iron to export markets. Sales of semi-finished products to third parties increased by 57% QoQ mainly due to the shipment of slabs; sales of finished products increased by 1% QoQ to 2.7 million tonnes amid a recovery in demand in key markets. Sales in the ‘home’ markets totalled 2.8 million tonnes, up 1% QoQ & 19% YoY. Sales in export markets increased by 20% QoQ to 1.4 million tonnes but down 30% YoY
Average Steel Product Prices
1. Quotations for steel products grew in all key regions. In the US and the EU, end demand for steel was high, stocks remained lean.
2. In Russia, dollar-denominated prices for uncoated flat rolled products increased by 36% QoQ & 114% YoY and by 13% QoQ & 78% YoY for rebar.
3. Slab export price FOB Black Sea increased by 29% QoQ & 154% YoY, the increase was supported by high demand and prices for finished products in international markets.
4. Average flat steel prices in the US grew by 28 % QoQ & 179 % YoY. In June 2021, prices for hot-rolled products reached an all-time-high, approaching USD 1,900 per tonne.
5. In the EU, dollar-denominated prices for flat rolled products set a record since 2008 with an increase of 44% QoQ & 155% YoY
Segment Sales in Q2 of 2021
1. NLMK Russia Flat - 3.527 million tonnes, up 18% QoQ & up 3% YoY
2. NLMK Russia Long - 0.818 million tonnes, up 11% QoQ & up 38% YoY
3. Raw material mining and processing - 5.159 million tonnes, up 8% QoQ & up 6% YoY
4. NLMK USA - 0.502 million tonnes, up 17% QoQ & up 52% YoY
5. Dansteel - 0.162 million tonnes, down 7% QoQ & up 33% YoY
6. NBH Sales - 0.329 million tonnes, down 34% QoQ & down 30% YoY