In Q2 2017, NLMK Group sales grew by 13% QoQ and by 5% YoY, to 4.2 million tons. Steel output totaled 4.1 million tons (-2% QoQ), with facilities running at 98% capacity.
Group sales grew driven by the seasonal uptick in sales of finished products in the Russian market. Finished product sales increased by 19%, to 2.90 million tons (+12% YoY), driven by the growth of sales by NLMK Russia Flat and NLMK Russia Long division, primarily on their “home markets”. Additional factor in sales growth was the delayed recognition of Q1 sales.
Steel output totaled 4.14 million tons (-2% QoQ and -3% YoY) due to planned maintenance at NLMK Lipetsk, including the successful completion of activities to launch the pulverized coal injection (PCI) units at BF-6 and BF-7. Forecast steel output for NLMK Group for 2017 remains at the level of 16.8 million tons.
NLMK Group sales on “home markets” grew by 17% QoQ, to 2.63 million tons, driven by a 44% QoQ and a 9% YoY increase in deliveries to Russian consumers. Sales to “home markets” accounted for 64% (+2% QoQ, but –1% YoY) of group sales.
In Q2 2017, Stoilensky Pelletizer reached its planned capacity of 6 million tons of pellets per year following ramp-up. (NLMK/Ukrainian metal)