NLMK Group has published today its preliminary Q1 2019 operating results.
Steel output decreased by 4% QoQ, to 4.2 million tons due to the overhauls at the Russian sites and seasonal factors. A 3% YoY steel output reduction is also due to the overhauls in Q1.
Steel capacity utilization remained high at 96% (-2%).
Sales remained almost flat QoQ totaling 4.6 million tons (-1%) supported by the sales of inventories accumulated in late 2018. Group sales grew by 11% YoY on the back of low base effect, which was due to higher slab sales to captive rolling facilities in Q1 2018.
Sales on home markets increased by 5% QoQ (flat YoY), to 2.6 million tons backed by higher slab sales on the Russian market. The share of group sales on home markets increased to 56% (+1% QoQ, -7% YoY).
Group sales on export markets totaled 2 million tons (-2% QoQ, +32% YoY). The quarter on-quarter export reduction was due to lower pig iron sales. Year-on-year export sales growth is mainly attributable to higher slab sales to third parties. (NLMK/Ukrainian metal)