NLMK Group (LSE: NLMK, MOEX: NLMK) increased its steel output by 11% qoq to 4.2 m t, following the completion of the first stage of major repairs at NLMK Lipetsk BF and BOF operations. NLMK Group sales grew by 8% qoq to 4.5 m t.*

Q1 2020 highlights:

• Steel output increased by 11% qoq to 4.2 m t due to the completion of major repairs at NLMK Lipetsk BF and BOF operations in Q4 2019. Steel output was up by 1% yoy.
• Sales grew by 8% qoq to 4.5 m t, due to the increase in the sales of both semi-finished and HVA products. Sales were down by 2% yoy due to a high base that was associated with the sale of previously accumulated stocks at the beginning of 2019.
• Sales to home markets grew by 4% qoq to 3 m t, driven by the growth in the sale of semis used for manufacturing oil and gas pipes in Russia. Group sales to home markets accounted for 68% (-1 p.p. qoq) of total sales.
• Sales on export markets totalled 1.4 m t (+7% qoq) amid higher sales volumes of finished HVA products to Turkey and the EU.