NLMK Group (LSE: NLMK, MOEX: NLMK) reports that Q3. By 2020, steel production increased by 3% YoY to 3.9 Mt (unchanged QoQ). Sales increased by 11% YoY to 4.4 mln tonnes (+ 2% QoQ).
Key indicators Q3. 2020:
- Steel production increased by 3% YoY to 3.9 Mt (unchanged QoQ).
- Sales increased by 11% YoY to 4.4 million tonnes, mainly due to increased sales of pig iron to the markets of the USA, China and Turkey. Compared to the previous quarter, sales were up 2%, the share of finished goods in the sales portfolio increased from 56% to 62%.
- Sales in export markets increased by 42% YoY to 1.8 Mt with an increase in the shipment of semi-finished products. Decrease relative to 2 sq. 2020 reflects a 10% recovery in business activity in Russia and a normalization of the share of export sales of Russian assets.
- Sales in the "home" markets amounted to 2.8 mln tons (-2% YoY) amid a decrease demand for billets for the production of large diameter pipes in the Russian market. Compared to the previous quarter, sales increased by 19% due to the recovery in demand for finished rolled products in the Russian market.
Key indicators 9 mon. 2020:
- Steel production was 11.9 Mt (unchanged YoY).
- Sales increased 3% YoY to 13.3 million tonnes due to a 4-fold increase in pig iron sales to 1 million tonnes.
- Sales in the “home” markets decreased by 4% yoy to 8.1 million tonnes, mainly due to for a decrease in demand in the US market.
- Sales in export markets increased by 16% YoY to 5.2 million tonnes amid increased exports of pig iron and slabs to third parties.