NLMK Consolidated Steel Output Dipped 9%

SEATTLE (Scrap Monster): The consolidated crude steel output by NLMK during the second quarter of 2019 totaled 4 million tonnes (mt). This is significantly lower by 9% when matched with the previous year. Also, the Q2 output was down by 5% from the prior quarter. The drop in output is mainly on account of shutdowns due to ongoing upgrades at its flagship Lipetsk works in Russia. The cumulative output during the initial half of 2019 reported 6% decline to total 8.2 mt.

The drop in sales of semi-finished products led to 7% sales decline over the prior quarter in Q2. When matched with the previous year, the sales were down by 3%. The consolidated sales during H1 2019 was up by 4% at 8.9 mt. The Russian market witnessed increased demand for finished steel.

The Q2 exports from Russia tumbled by 9% over the prior quarter. The semis exports reported huge decline by 19%. On the other hand, the exports of hot rolled coils and cold rolled coils surged higher by 62% and 19% quarter-on-quarter.

The company press release cites 11% jump in NLMK’s home market sales. Sales from the Russian segment have dropped by 10%. The sales of slabs and billets reported decline. The total sales of semis were down by 12% over the quarter.

The U.S. sales totaled 580,000 t, lower by 3% from the prior quarter and by 8% from the previous year. Belgian NBH sales skyrocketed by 20% from Q1 2019.