NLMK Q4 shipments rise despite Russia slump
NLMK’s consolidated finished product sales grew 6% on-year in the fourth quarter of 2016 to 2.25 million tonnes, driven by a 43% surge in long product sales to 539,000t, Kallanish learns from the Russian steelmaker.
Consolidated sales in home markets climbed 3% on-year in Q4 to 2.42mt, despite a -3% dip in Russian sales to 1.36mt due to a seasonal demand decline. NLMK’s international divisions increased sales in their home European and US markets.
Consolidated exports declined -12% in Q4 to 1.21mt, comprising 33% of overall sales, due mainly to the increase in home flat steel sales predominantly by NLMK’s international companies.
NLMK’s Russia Flat division saw hot and cold rolled coil shipments decline -13% and -10% respectively on-year in Q4 to 504,000t and 300,000t. However, hot-dip galvanized and pre-painted galvanized coil sales rose 16% and 33% respectively to 162,000t and 112,000t. Merchant pig iron sales, all of which are exported, slumped -54% to 86,000t.
NLMK’s Russia Long division saw merchant billet and rebar sales grow 20% and 42% respectively on-year in Q4 to 141,000t and 413,000t. Wire rod sales surged over 100% to 58,000t. The growth was driven by exports.
In full-year 2016 NLMK Russia Flat reduced merchant slab sales -13% on-year to 2.61mt, and HDG sales fell -4% to 648,000t. However, HRC, CRC and PPGI sales rose 4%, 2% and 23% respectively to 2.6mt, 1.48mt and 459,000t. Merchant pig iron exports fell -36% to 435,000t.
NLMK Russia Long saw merchant billet sales surge over 100% in 2016 to 612,000t, while sections sales also soared over 100% to 35,000t. Wire rod and rebar deliveries rose 53% and 2% respectively to 176,000t and 1.73mt. The division’s exports surged 228% to 1.1mt.
Meanwhile, NLMK Belgium Holdings, which comprises NLMK Clabecq (Belgium), NLMK Verona (Italy), NLMK La Louvière (Belgium) and NLMK Strasbourg (France), saw sales rise 8% in 2016 to 2.14mt. This was on the back of the recovery in demand in Europe from key sectors such as machine building and automotive, as well as weaker competition from rolled product imports.
Source: Kallanish.com