Q3 and 9M 2020 NLMK Group Trading Update

Q3 2020 highlights:

• Steel output grew by 3% yoy to 3.9 m t (flat qoq).
• Sales increased by 11% yoy to 4.4 m t, due mainly to higher pig iron sales to the US, Chinese, and Turkish markets. Quarter-on-quarter, sales were up by 2%, while the share of finished products in the sales portfolio grew from 56% to 62%.
• Sales in export markets grew by 42% yoy to 1.8 m t, as shipments of semis increased. The 10% quarter-on-quarter reduction reflects the recovery of business activity in Russia and a normalized share of export sales by the Group’s Russian companies.
• Sales in ‘home’ markets totalled 2.8 m t (-2% yoy), amid a decrease in demand for slabs for the production of large-diameter pipes on the Russia market. Quarter-on-quarter, sales grew by 19% due to the recovery in demand for finished products on the Russian market.

9M 2020 highlights:

• Steel output totalled 11.9 m t (flat yoy).
• Sales grew by 3% yoy to 13.3 m t, driven by a 4x increase in pig iron sales to 1 m t.
• Sales on ‘home’ markets declined by 4% yoy to 8.1 m t, due mainly to lower demand in the US market.
• Sales on export markets grew by 16% yoy to 5.2 m t, supported by increased exports of pig iron and slabs to third parties.