NLMK ups Q4 steel output 3% to 4.2 mln tonnes
MOSCOW. Jan 19 (Interfax) - The NLMK Group, whose flagship asset is the Novolipetsk Iron & Steel Works, raised crude steel output 3% quarter-on-quarter in Q4 2016 to 4.223 million tonnes, the company said in a trading update.
Steel output grew 4% in 2016 as a whole to 16.641 million tonnes.
The growth in output was driven by improved equipment productivity and strong demand for products, including billet exports.
Sales fell 15% quarter-on-quarter to 3.598 million tonnes due to a seasonal decrease in demand in the Russian market and the high base effect in Q3 when finished product sales contracted in previous periods were accounted for. Sales for the year were level with 2015 at 15.888 million tonnes.
NLMK operating highlights ('000 tonnes):
| Q4 2016 | Q4 2016/Q3 2016 | 2016 | 2016/2015 | |
| Output | ||||
| Crude steel | 4 223 | 3% | 16 641 | 4% |
| Merchant slabs | 1 337 | 30% | 4 722 | -5% |
| Flat products | 1 921 | -5% | 8 084 | 3% |
| Long products | 513 | 2% | 1 915 | 1% |
| Metalware | 66 | 1% | 260 | -5% |
| Total production | 4 057 | 5% | 16 103 | 1% |
| Sales | ||||
| Semi-finished steel | 1 351 | -6% | 5 713 | -5% |
| Flat products | 1 708 | -19% | 7 977 | 4% |
| Long products and metalware | 539 | -20% | 2 197 | 5% |
| Total sales | 3 598 | -15% | 15 888 | 0% |
NLMK has steelmaking capacity in Russia, Europe and the United States. Overall capacity is 17 million tonnes per year, 16 million tonnes of which is located in Russia.
NLMK has production assets in Russia, Europe and the U.S. NLMK's principal owner is Vladimir Lisin, whose 84% stake is held by Fletcher Group Holdings. Depositary receipts on the company's shares (ten receipts represent one share) are traded on the London Stock Exchange.
