NLMK Group (LSE: NLMK, MOEX: NLMK) reports that in Q3. 2021 sales were 4.1 mt (-4% qoq). Export sales rose 2% qoq to 1.4 mt on the back of strong demand.
Q3 Key Figures. 2021
- Steel production decreased by 15% QoQ to 3.9 Mt (+ 1% YoY) amid an incident in the oxygen supply infrastructure of the Lipetsk steelmaking plant site in August and subsequent renovations.
- Sales decreased by 4% QoQ to 4.1 mt (-7% YoY) with a decrease in steel production at the Lipetsk site. Loading recovered after the completion of repairs and in September it was 97%. Sales of semi-finished products to third parties increased by 1% qoq, mainly due to higher sales of pig iron. Sales of finished products increased by 1% QoQ to 2.7 Mt (unchanged YoY) on the back of strong final demand in key markets.
- Domestic market sales totaled 2.8 million tonnes (unchanged QoQ and YoY).
- Sales in export markets increased by 2% qoq to 1.4 million tonnes.
- Steel production increased by 8% YoY to 12.9 Mt with equipment reaching full capacity following the modernization of NLMK's blast furnace and steelmaking facilities, as well as with an increase in smelting in the segments Long Products Russia and NLMK USA.
- Sales amounted to 12.4 mt (-7% yoy) amid resumption of intra-group supplies of NLMK slabs to NLMK USA assets (0.9 mt).
- Sales in home markets increased by 2% YoY to 8.3 million tonnes, mainly due to increased demand in the US market (+ 23% YoY).
- Export sales fell 23% YoY to 4.0 Mt due to the high base effect last year, when supplies were redistributed to external markets due to weak demand in Russia during the quarantine restrictions.