NLMK's crude steel production in the first half of 2019 fell 8.6% y-o-y to 8.2 million tonnes, but consolidated sales in high steel demand in the Russian market increased by 4% y-o-y at 8.9 million tonnes. Sales in the second quarter were down by 7% q-o-q and 3% y-o-y in overall low semi-finished product sales.
NLMK's domestic market sales — Russia, Europe and the U.S. — increased by 11% quarter-on-quarter in the second quarter. Seasonal demand supported sales for both long and flat products in Russia. Export sales decreased by 40% q-o-q and 26% y-o-y to 1.2 million tons in slab sales.
Sales from the Russian segment decreased by 10% q-o-q and 11% y-o-y in Q2, while product sales volume decreased by 8% q-o-q and 6% y-o-y to 1.4 million tonnes. Sales of slab, NLMK's main export product, decreased in BF and BOF increases, while log sales recorded an increase in demand for rebar in the Russian market. During this period, semi-product sales decreased by 12% in the second quarter, down by 15% y-o-y to 1.67 million tonnes.
Russia's second-quarter exports decreased by 9%q-o-q, increasing by 1%y-o-y to 2.4 million tonnes. Semi-product exports decreased by 19% q-o-q and 8% y-o-y to 1.73 mt. However, hot rolled roll exports increased by 62% q-o-q and 48% y-o-y to 312,000 tons, while cold roll exports increased by 19% in the quarter and 71% y-o-y to 197,000 tons.
U.S. sales decreased by 3% q-o-q to 8% y-o-y . Sales of the Belgian NBH increased by 20% q-o-q and 7% y-o-y to 620,000 tonnes. Hot-rolled strip second-quarter sales increased by 22% q-o-q and 19% y-o-y to 450,000 tonnes on demand from high-end industrial producers.
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