Operational results of NLMK Group for Q2 and 6 months. 2020

Group NLMK (LSE: NLMK, MOEX: NLMK) informs that for 6 months. 2020 sales amounted to 8.9 million tonnes (unchanged yoy). Sales in Q2 increased by 2% yoy to 4.4 million tonnes (-3% q/q).

Key indicators Q2 2020:

• Dynamics of production and sales of steel products were under the influence of falling demand in traditional markets in pandemic COVID-19.


• steel Production decreased by 8% QoQ (-3% yoy) to 3.9 million tonnes with a decrease in the loading segments of rolled steel in Russia and NLMK USA. Download of production in long products segment began recovering by the end of the quarter and in June was 89%. Download European assets and NLMK USA remains low (66% and 50% in June, respectively).


• Sales rose 2% yoy to 4.4 million tonnes due to the increase in sales of slabs and pig iron for export in the same period last year conducted repairs in the blast furnace and steel production NLMK. In comparison with the previous quarter, sales decreased by 3%.


• Sales in export markets increased to 2 million tonnes (+51% QoQ; +71% yoy) due to the redirection of supply to the Asian market in connection with reduction in demand on other markets in April and may. Exports of semi-finished and finished steel increased by 76% and 22% QoQ respectively (+137% yoy and +17% yoy).


• Selling on the "home" markets decreased by 24% QoQ (-23% yoy) to 2.31 million tonnes.

Key indicators 6 months. 2020:

• steel Production decreased by 1% yoy to 8.1 million tonnes.


• Sales amounted to 8.9 million tonnes (unchanged yoy).


• Sales in export markets grew by 6% yoy to 3.4 million tonnes against the background of increasing exports of semi-finished products.


• Sales in the home markets fell by 6% yoy to 5.3 million tonnes, mainly due to the decline in demand in the U.S. market.