NLMK Group (LSE: NLMK, MOEX: NLMK) increased steel output by 12% qoq (+4% yoy) to 4.4 m t. Consolidated sales declined by 7% qoq to 3.9 m t (-13% yoy) driven by a decrease in commercial pig iron sales amid repairs at NLMK Lipetsk BF operations coupled with an increase in intragroup slab sales.

Q1 2021 highlights:

• Steel output grew to 4.4 m t (+12% qoq; +4% yoy) with a post-overhaul increase in NLMK equipment productivity, as well as with the completion of planned maintenance at the Russia Long Products segment.
• External sales decreased by 7% qoq (-13% yoy) to 3.9 m t with the decrease in commercial pig iron sales against the backdrop of completed overhauls at one of NLMK Lipetsk blast furnaces, and due to recovering intragroup slab deliveries to NLMK USA to meet local demand for finished rolled products (in stocks at the end of Q1). Additionally, stocks have piled up at the end of the quarter at the Black Sea ports due to unfavourable weather conditions; corresponding steel volumes will be sold in Q2 2021.
• Sales on ‘home’ markets increased by 4% qoq (-10% yoy) to 2.7 m t.
• Sales on export markets decreased to 1.2 m t (-21% qoq; -12% yoy) with a decline in pig iron sales and an increase in intragroup slab deliveries.

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