By Jaime Llinares Taboada
Novolipetsk Metal mentioned on Thursday that its income soared within the second quarter of the 12 months, fueled by larger metal costs. Here is what the Russian steelmaker needed to say:
About manufacturing and gross sales:
“Within the second quarter, metal manufacturing elevated 5% to 4.6mt (+ 19% year-on-year) with the ramp-up of NLMK steelmaking tools after the overhaul.
“Gross sales reached 4.3mt (+ 11% qoq; -1% yoy) as a consequence of a rise in slab exports to the Center East and EU markets.
“The share of semi-finished merchandise elevated quarter-on-quarter amid a rise within the provide of pig iron, billets and slabs to thirds by 57% quarter-on-quarter. Gross sales of completed merchandise amounted to 2.7 mt (+ 1% qoq, + 12% yoy). “
“Income elevated 44% quarter-on-quarter to $ 4.1 billion (+ 90% year-on-year) with larger costs for metal merchandise and better manufacturing and gross sales volumes.”
“Consumption of metal merchandise has elevated as a result of realization of deferred demand and authorities assist measures. Metal capability utilization charges have reached pre-crisis ranges as amenities that had been stopped through the first wave of the pandemic have been relaunched. “
“The demand for metal in worldwide markets has continued to recuperate, related to a seasonal improve in exercise and the belief of deferred consumption.”
“Metal consumption in america grew 9% year-on-year (+ 41% year-on-year) and 12% year-on-year (+ 43% year-on-year) within the EU.”
“In China, demand for metal merchandise grew 11% quarter-on-quarter (+ 8% year-on-year), supported by elevated exercise within the development sector.”
“In Russia, the consumption of metallic merchandise elevated 8% year-on-year on a seasonal foundation.”
Concerning the charges:
“In 2Q 2021, metal costs continued to extend in all key markets. Within the US and the EU, costs have reached new highs.
“Flat metal market costs elevated 28% year-on-year (+ 179% year-on-year) in america and 44% year-on-year (+ 155% year-on-year) within the EU, as a result of implementation of infrastructure tasks and supported by shopper demand. “
“The dollar-denominated costs of metal merchandise within the Russian market elevated 36% quarter-on-quarter (+ 114% year-on-year).”
On uncooked materials prices:
“Australian coking coal costs elevated 6% year-on-year (+ 12% year-on-year) amid inventory rebuilding in India, Japan and South Korea. With the continued ban on coal imports from Australia, coking coal costs in China elevated 17% year-on-year (+ 98% year-on-year) as a consequence of elevated metal manufacturing and of Mongolia’s restricted provide.
“The rise in uncooked materials costs for iron ore (+ 18% qoq; + 112% yoy) was triggered by a scarcity available in the market coupled with file metal manufacturing volumes in China, a elevated demand in different areas and restricted provides from Brazil. “
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT