NLMK ao

Earnings Release • Oct 13, 2021

National Storage Mechanism | Additional information

RNS Number : 9335O

Novolipetsk Steel

13 October 2021

	Investor relations contact: Dmitriy Kolomytsyn, CFA +7 (495) 504 0 504 ir@nlmk.com	Media relations contact: Maria Simonova +7 (915) 322 62 25 simonova_mn@nlmk.com

Press release

13 October 2021

Q3 & 9M 2021 NLMK Group Trading Update

NLMK Group (LSE: NLMK, MOEX: NLMK) today announces that its Q3 2021 sales totalled 4.1 m t

(-4% qoq). Sales in export markets grew by 2% qoq to 1.4 m t amid stable demand.

Q3 2021 highlights:

·    Steel output decreased by 15% qoq to 3.9 m t (+1% yoy) due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site in August and the subsequent repair works.

·    Sales were down by 4% qoq to 4.1 m t (-7% yoy) following a decrease in NLMK Lipetsk production output. Capacity utilization rates recovered once repairs were complete and reached 97% in September. Sales of semi-finished products to third parties grew by 1% qoq, due mainly to higher pig iron sales. Sales of finished products increased by 1% qoq to 2.7 m t (flat yoy) amid stable final demand in key markets.

·    Sales in "home" markets totalled 2.8 m t (flat qoq and yoy).

·    Sales in export markets grew by 2% qoq to 1.4 m t.

9M 2021 highlights:

·    Steel output increased by 8% yoy to 12.9 m t as equipment ramped up to full capacity after upgrades at NLMK BF and BOF operations, and following output growth at NLMK Russia Long Products and NLMK USA.

·    Sales totalled 12.4 m t (-7% yoy) amid resumed intragroup slab supplies from NLMK Lipetsk to NLMK USA (0.9 m t).

·    Sales in "home" markets grew by 2% yoy to 8.3 m t, due mainly to increased demand on the US market (+23% yoy).

·    Sales in export markets decreased by 23% yoy to 4.0 m t due to the high base of last year, when supplies were redistributed in favour of exports due to weak demand in Russia during lockdown limitations.

* Hereinafter, Q3 2021 and 9M 2021 output and sales figures are preliminary and can be updated. Hereinafter, NLMK Group steel output and sales on "home" markets are shown taking into account NBH performance. Product sales are shown without taking into account NBH performance. Sales to NLMK Group's "home" markets are understood to be sales by NLMK Group companies in the regions where the products are produced in Russia, the EU, and the US.

NLMK Group's Q3 2021 operating performance
Steel output decreased by 15% qoq (+1% yoy) to 3.9 m t due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site in August and the subsequent repair works. Sales were down to 4.1 m t (-4% qoq; -7% yoy) as slab supplies to NBH and to external markets decreased amid steel output reduction. Sales mix: the share of semi-finished products in sales was 34% (-3 p.p. qoq; -4 p.p. yoy) amid lower supplies of slabs and billets to third parties. Export supplies of square billet went down amid a reduction in the product's profitability due to the export tariffs on steel introduced in Russia from August to December 2021. Sales of finished products stood at 2.7 m t (+1% qoq, flat yoy, Appendix 2). Sales in "home" markets reached 2.8 m t (flat qoq and yoy). Amid high final demand, sales in the US grew by +17% qoq (+60% yoy). In the EU, sales increased by 7% qoq (-12% yoy). In Russia, sales went down by 7% qoq (-9% yoy) due to a slowdown of final demand and buyer activity of traders in anticipation of further price reduction (Appendix 14). Sales in export markets grew by 2% qoq to 1.4 m t. The 21% yoy decrease was due to the high base of Q3 2020, when supplies were being made to non-traditional export destinations, such as China.

NLMK Group's 9M 2021 operating performance
Steel output increased to 12.9 m t (8% yoy) as upgrades were completed at NLMK BF and BOF operations, and following output growth at NLMK Russia Long Products and NLMK USA. Sales totalled 12.4 m t (-7% yoy) as intragroup slab supplies to NLMK USA were renewed (+0.9 m t yoy) amid a strong demand in the region (production was carried out with slabs from external suppliers last year) and lower pig iron output due to BF repairs in Q1-3. Sales mix: sales of semi-finished products to third parties decreased by 21% yoy following an increase in slab supplies to NLMK USA and NLMK DanSteel. Slab shipments to NBH totalled 1.2 m t (-23% yoy) due to the La Louvière Hot Strip Mill upgrade in H1 2021. Sales of finished products increased by 3% yoy to 8.2 m t (Appendix 2). Sales in "home" markets increased by 2% yoy to 8.3 m t amid increased steel consumption in Russia and the US (Appendix 14). Sales in export markets decreased by 23% yoy to 4.0 m t due to the high base of Q3 2020, when supplies were redirected to export markets.

Global prices in Q3 2021
Average raw material prices: ·    In Q3 2021 coking coal prices continued to grow amid a continued ban on Australian coal imports in China and limited demand. Export prices in Australia grew by 88% qoq (+121% yoy) due to higher demand in India, Europe, Japan, and South America. Coal import prices in China reached a 10-year high of $585/t in September. On average, prices grew by 53% qoq (+212% yoy). China experienced a deficit of coking coal due to decreased internal output following the introduction of strict safety control measures for coal assets. An additional factor on the supply side was the drop in supplies from Mongolia due to an increased rate of COVID-19 cases. Coal prices in Russia increased by 33% qoq (+156% yoy) following global benchmarks. ·    Iron ore prices decreased by 14% qoq (+44% yoy). The turnaround in prices was triggered by lower demand in China. The main reason for the decrease in iron ore consumption was the slowdown of economic growth in China and state measures for steel output restriction in H2 2021. The price decrease was further spurred by stronger ore supply from Australia at the end of the quarter. ·    Scrap prices in the USA and the EU went down by 3% qoq (+62% yoy) amid a decrease of demand in Turkey and a reduction in iron ore prices. In turn, high long product prices in the US provided support. Scrap prices in Russia were down by 4% qoq (+57% yoy), following prices in Turkey. Average steel product prices: ·    Internal steel product prices on key markets demonstrated a positive trend in Q3 2021. The US became the growth leader, with a continued deficit of steel in the region. Steel export prices in Russia went down as demand in the EU and Turkey slowed down. ·    In Russia, dollar-denominated prices for uncoated flat products grew by 2% qoq (+125% yoy), while rebar prices increased by 9% qoq (+94% yoy). ·    Slab export prices (FOB Black Sea) went down by 9% qoq (+89% yoy) as demand decreased on the EU and Turkish markets. ·    Average flat product prices in the USA increased by 23% qoq (+247% yoy). Hot-rolled steel prices hit an all-time high, reaching $2,160/t in September. ·    Dollar-denominated prices for flat products in the EU increased by 8% qoq (+162% yoy).

SEGMENTAL PERFORMANCE
NLMK RUSSIA FLAT PRODUCTS[1]
Q3 2021  performance
Steel output decreased by 19% qoq (flat yoy) to 2.9 m t due to the incident in the steelmaking infrastructure at NLMK in August (Appendix 9). Sales decreased by 15% qoq to 3.0 m t (-9% yoy) due to a 33% qoq reduction of slab shipments to export markets caused by a temporary steel output decrease (Appendix 2). Sales mix: Sales of semis to third parties increased by 5% yoy to 1.1 m t, due mainly to sales growth in export markets. Slab sales to the Group companies and to NBH went down by 53% qoq to 0.5 m t. Year-on-year, intragroup slab sales increased by 30% due to the recovery of slab shipments to NLMK USA since Q1 2021 and higher shipments to NLMK DanSteel. Finished rolled product shipments stood at 1.4 m t (flat qoq; -13% yoy) as final demand in machine building and construction sectors in Russia normalized, and as traders reduced their stocks expecting a further steel price downturn (Appendix 3). Sales markets: Shipments in Russia declined by 9 % qoq to 1.1 m t (Appendix 3). Exports decreased by 19% qoq to 1.8 m t (-9% yoy) amid lower slab shipments due to the decrease in production that was partially offset by the growth of pig iron and hot-rolled steel sales.

9M 2021 performance
Steel output grew by 5% yoy to 9.8 m t following the completion of the reconstruction at NLMK Lipetsk steelmaking operations in Q1-Q3 2020 and at NLMK Lipetsk BF operations in H2 2020 (Appendix 9). Sales of the Segment decreased by 7% to 9.5 m t due to a number of factors: ·    Lower pig iron output due to repairs at BF operations in Q1-Q3 2021, and due to the incident in the steelmaking infrastructure at NLMK in August. ·    Longer average slab lead time following the recovery of slab shipments to NLMK USA. ·    Scheduled maintenance of the hot rolling and cold rolling mills in Q2 2021 caused a decrease in hot- and cold-rolled steel sales (Appendix 2). Sales structure: sales of finished rolled products decreased by 8% yoy to 4.2 m t due to planned repairs of hot and cold rolling mills in H1 2021. Sales of semi-finished products to third parties went down by 25% yoy to 2.7 m t, due mainly to an increase in intragroup slab shipments in Q1-Q2 2021. Sales of semi-finished products to the Group sites and to NBH grew by 30% yoy to 2.6 m t due to increased slab shipments to the USA (Appendix 3). Sales markets: shipments in Russia decreased by 4% yoy to 3.6 m t due to the decrease in sales of hot-rolled and coated steel due to scheduled hot rolling mill and HDGL repairs in Q1-Q2 2021 (Appendix 3). Exports decreased by 8% yoy to 5.9 m t due to the high base of Q3 2020, when sales were redistributed in favour of exports due to weak demand in Russia during lockdown restrictions.

[1] NLMK Russia Flat Products companies include NLMK Lipetsk, VIZ-Steel, and Altai-Koks. Export sales are calculated including the corresponding share of trading companies.

NLMK RUSSIA LONG PRODUCTS[2]
Q3 2021 performance
Steel output grew by 4% to 0.8 m t (+3% yoy) following the increase in capacity utilization rates at NLMK Ural.  Sales decreased by 9% qoq to 0.75 m t (-7% yoy) due to lower export shipments following the introduction of export tariffs for steel products in Russia. Finished product sales totalled 0.7 m t (-3% qoq; -8% yoy) (Appendix 4). Sales markets: export sales dropped by 23% qoq to 0.2 m t (-24% yoy) amid the decrease of square billet sales. Sales in Russia decreased by 2% qoq to 0.6 m t (+1% yoy) due to a slowdown in the construction sector towards the end of the quarter backed by anticipations of further price decrease. Sales in Russia accounted for 74% (+5 p.p. qoq; +6 p.p. yoy). Scrap: scrap sales went down by 12% qoq to 1.4 m t (-1% yoy) due to the decrease in output at the Lipetsk site and lower production of square billet at NLMK Kaluga. Group companies accounted for 98% of scrap sales (Appendix 4).
9M 2021 performance
Steel output increased by 16% yoy to 2.4 m t due to the low base effect: last year the production programme was reduced as demand dropped during the pandemic.  Sales grew by 17% yoy to 2.3 m t driven by the growth of demand in the construction sector (Appendix 4). Sales markets: the Russian market accounted for 71% (+4 p.p. yoy). The volume of steel product sales in Russia increased by 24% yoy to 1.6 m t. Export sales increased by 4% yoy to 0.7 m t. Scrap: scrap sales increased by 16% yoy to 3.7 m t driven by steel output growth in the long products segment (Appendix 4). 2 NLMK Russia Long Product companies include NLMK Ural, NLMK Metalware, NLMK Kaluga, and scrap collecting facilities. Export sales of long products are calculated taking into account the corresponding share of trading companies' sales.
MINING AND PROCESSING OF RAW MATERIALS
Q3 2021 performance
Iron ore raw material output increased by 1% qoq to 5.1 m t driven by increased equipment productivity. (Appendix 12). Iron ore raw material sales decreased by 6% qoq to 4.8 m t (+18% yoy) due to the incident in the steelmaking infrastructure at NLMK in August. Sales to third parties went down by 7% qoq to 258 kt (+64% yoy).
9M 2021 performance
Iron ore raw materials output increased by 10% yoy to 15.0 m t amid the expansion of concentrate production capacities and the Q3 2020 low base (Appendix 12). Iron ore raw material sales increased by 9% yoy to 14.8 m t following output growth (Appendix 5). Sales of iron ore raw materials to third parties decreased by 18% yoy to 0.6 m t due to increased demand for raw materials from NLMK Lipetsk.
NLMK USA
Q3 2021 performance
Segment sales increased by 17% qoq to 0.6 m t (+60% yoy) amid high demand for steel and additional measures to support infrastructure construction in the US (Appendix 6).
9M 2021 performance
Sales stood at 1.5 m t (+ 23% yoy) amid recovering demand for steel in the US vs. Q3 2020 (Appendix 6).
NLMK DANSTEEL:
Q3 2021 performance
Sales decreased by 20% qoq to 0.13 m t (+34% yoy) amid scheduled equipment maintenance (Appendix 7).
9M 2021 performance
Sales increased by 22% yoy to 0.47 m t following the recovery in demand for steel in the EU in Q1-Q2 2021 (Appendix 7).

JOINT VENTURE - NLMK Belgium Holdings (NBH) [3]
Q3 2021 performance
Sales grew by 16% qoq to 0.4 m t following the completion of the first stage of the Hot Strip Mill upgrade at NLMK La Louvière (Strategy 2022 project). The mill's step-by-step ramp-up impacted the year-on-year sales trend (-17%) (Appendix 8).
9M 2021 performance
Shipments dropped by 21% yoy to 1.2 m t due to the rolling capacity upgrades in H1 2021 (Appendix 8).

3 NBH assets include producers of plate NLMK Clabecq (Belgium), NLMK Verona (Italy) and producers of strip products NLMK La Louvière (Belgium) and NLMK Strasbourg (France).

Appendices

Appendix 1. NLMK Group operating highlights

Production, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Crude steel production (without NBH)	3.867	4.523	-15%	3.824	1%	12.696	11.804	8%
Crude steel production (with NBH)	3.911	4.582	-15%	3.864	1%	12.858	11.929	8%
Capacity utilization	87%	96%	-9 p.p.	97%	-10 p.p.	92%	94%	-2 p.p.
Sales, m t
Semi-finished steel 5	1.404	1.609	-13%	1.690	-17%	4.230	5.370	-21%
Finished steel	2.742	2.720	1%	2.753	0%	8.153	7.931	3%
Flat	2.086	2.041	2%	2.037	2%	6.182	6.197	0%
Longs and metalware	0.657	0.679	-3%	0.716	-8%	1.970	1.734	14%
Total consolidated sales	4.146	4.329	-4%	4.443	-7%	12.383	13.300	-7%
Sales to home markets of the Group 6	66%	66%	0 p.p.	60%	+6 p.p.	67%	61%	+6 p.p.
Sales to external markets	34%	34%	0 p.p.	40%	-6 p.p.	33%	39%	-6 p.p.
For information: slab sales to foreign subsidiaries and affiliates	0.534	1.130	-53%	0.410	30%	2.575	1.978	30%
Segment sales
Russian Flat Products	2.983	3.527	-15%	3.281	-9%	9.507	10.182	-7%
Russian Long Products	0.747	0.818	-9%	0.802	-7%	2.305	1.965	17%
Mining	4.845	5.159	-6%	4.112	18%	14.789	13.596	9%
NLMK USA	0.586	0.502	17%	0.366	60%	1.519	1.234	23%
Dansteel	0.130	0.162	-20%	0.097	34%	0.465	0.383	22%
For information: NBH Sales	0.384	0.330	16%	0.461	-17%	1.206	1.534	-21%

5 Including commercial pig iron, slabs and billets

6 Home markets: Russia for the Russian assets of NLMK Group, North America for NLMK USA, and the EU market for NLMK DanSteel and NBH

Appendix 2. NLMK Russia Flat Products sales by product

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Pig iron	0.249	0.134	85%	0.389	-36%	0.415	1.048	-60%
Slabs incl.	1.363	2.014	-32%	1.314	4%	4.891	4.550	8%
Slab sales to foreign subsidiaries and affiliates	0.534	1.130	-53%	0.410	30%	2.575	1.978	30%
to NLMK USA, NLMK Dansteel	0.296	0.679	-56%	0.102	> 100%	1.407	0.464	> 100%
to NBH	0.239	0.451	-47%	0.308	-23%	1.169	1.514	-23%
Hot-rolled steel	0.693	0.607	14%	0.680	2%	1.967	2.085	-6%
Cold-rolled steel	0.281	0.323	-13%	0.411	-32%	0.992	1.149	-14%
Galvanized steel	0.175	0.212	-17%	0.229	-24%	0.571	0.629	-9%
Pre-painted steel	0.069	0.096	-29%	0.129	-47%	0.246	0.322	-24%
Dynamo steel	0.055	0.062	-11%	0.066	-17%	0.182	0.200	-9%
Transformer steel	0.069	0.077	-10%	0.064	9%	0.214	0.199	8%
incl. VIZ-Steel	0.041	0.046	-10%	0.038	8%	0.126	0.116	8%
Other metal products*	0.029	-	-	-	-	0.029	-	-
Total products	2.983	3.527	-15%	3.281	-9%	9.507	10.182	-7%
Coke sales from Altai-Koks	0.719	0.816	-12%	0.827	-13%	2.310	2.478	-7%
incl. to Novolipetsk	0.563	0.714	-21%	0.585	-4%	1.942	1.959	-1%

* Sales of pipe products manufactured under the tolling scheme

Appendix 3. NLMK Russia Flat Products sales by region and product

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Russian market	1.143	1.250	-9%	1.269	-10%	3.558	3.711	-4%
Semi-finished products	0.165	0.219	-25%	0.106	55%	0.583	0.572	2%
Hot-rolled steel	0.475	0.446	7%	0.520	-9%	1.335	1.425	-6%
Cold-rolled steel	0.203	0.250	-19%	0.263	-23%	0.715	0.707	1%
Galvanized steel	0.170	0.206	-18%	0.220	-23%	0.555	0.597	-7%
Pre-painted steel	0.068	0.095	-29%	0.128	-47%	0.243	0.320	-24%
Dynamo steel	0.022	0.023	-7%	0.020	10%	0.065	0.058	12%
Transformer steel	0.012	0.011	11%	0.012	1%	0.033	0.032	3%
Other metal products*	0.029	-	-	-	-	0.029	-	-
Export markets	1.840	2.276	-19%	2.012	-9%	5.949	6.471	-8%
Semi-finished products	1.447	1.930	-25%	1.596	-9%	4.724	5.026	-6%
Hot-rolled steel	0.218	0.162	35%	0.160	36%	0.632	0.660	-4%
Cold-rolled steel	0.078	0.074	6%	0.148	-47%	0.277	0.442	-37%
Galvanized steel	0.005	0.005	-11%	0.008	-40%	0.016	0.032	-51%
Pre-painted steel	0.001	0.001	6%	0.001	-16%	0.003	0.002	22%
Dynamo steel	0.034	0.039	-13%	0.047	-28%	0.117	0.142	-18%
Transformer steel	0.057	0.066	-14%	0.052	11%	0.181	0.167	8%
Other metal products*	-	-	-	-	-	-	-	-
Total sales	2.983	3.527	-15%	3.281	-9%	9.507	10.182	-7%

* Sales of pipe products manufactured under the tolling scheme

Appendix 4. NLMK Russia Long Products sales by product

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Billet	0.090	0.139	-35%	0.086	5%	0.334	0.232	44%
Rebar	0.548	0.524	5%	0.579	-5%	1.580	1.338	18%
Sections	0.000	0.008	-100%	0.013	-100%	0.010	0.052	-81%
Wire rod	0.052	0.067	-23%	0.051	2%	0.180	0.152	19%
Metalware	0.057	0.080	-29%	0.074	-23%	0.200	0.192	4%
Total steel products	0.747	0.818	-9%	0.802	-7%	2.305	1.965	17%
Ferrous and non-ferrous scrap, incl.	1.362	1.546	-12%	1.383	-1%	3.716	3.199	16%
to NLMK Ural	0.530	0.590	-10%	0.465	14%	1.445	1.205	20%
to NLMK Kaluga	0.342	0.392	-13%	0.392	-13%	1.003	0.829	21%
to Novolipetsk	0.464	0.549	-15%	0.505	-8%	1.212	1.104	10%

Appendix 5. Mining Division sales

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Iron ore concentrate	2.708	2.895	-6%	2.346	15%	8.224	7.853	5%
incl. to Novolipetsk	2.525	2.727	-7%	2.203	15%	7.873	7.184	10%
Sinter ore	0.290	0.353	-18%	0.247	17%	0.909	0.752	21%
incl. to Novolipetsk	0.215	0.244	-12%	0.232	-7%	0.702	0.737	-5%
Pellets	1.847	1.911	-3%	1.519	22%	5.656	4.991	13%
incl. to Novolipetsk	1.847	1.911	-3%	1.519	22%	5.656	4.991	13%
Total iron ore	4.845	5.159	-6%	4.112	18%	14.789	13.596	9%

Appendix 6. NLMK USA sales 

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Hot-rolled steel	0.330	0.297	11%	0.207	59%	0.920	0.627	47%
Cold-rolled steel	0.109	0.082	32%	0.069	58%	0.235	0.263	-11%
Galvanized steel	0.145	0.122	19%	0.086	68%	0.362	0.339	7%
Total NLMK USA 7	0.586	0.502	17%	0.366	60%	1.519	1.234	23%

7 NLMK USA also sells non-significant volumes of merchant slabs not included into total rolled steel sales.

Appendix 7. NLMK DanSteel sales

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Thick plates	0.130	0.162	-20%	0.097	34%	0.465	0.383	22%

Appendix 8. NBH (associated companies) sales

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Hot-rolled steel	0.204	0.098	> 100%	0.251	-19%	0.538	0.877	-39%
Cold-rolled steel	0.002	0.005	-53%	0.005	-55%	0.015	0.021	-27%
Coated steel	0.039	0.052	-26%	0.074	-47%	0.162	0.204	-21%
Total flat steel	0.245	0.155	58%	0.330	-26%	0.715	1.102	-35%
Semi-finished (ingots)	0.016	0.021	-27%	0.011	40%	0.058	0.040	44%
Thick plates	0.123	0.154	-20%	0.120	2%	0.433	0.391	11%
Total steel products	0.384	0.330	16%	0.461	-17%	1.206	1.534	-21%

Appendix 9. NLMK Group steel output

Production, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Lipetsk site	2.877	3.557	-19%	2.864	0%	9.764	9.334	5%
NLMK Long Products	0.811	0.777	4%	0.786	3%	2.377	2.055	16%
incl. NLMK Kaluga	0.307	0.310	-1%	0.361	-15%	0.950	0.889	7%
NLMK Indiana (NLMK USA)	0.179	0.189	-5%	0.173	3%	0.555	0.414	34%
NLMK Group (without NBH)	3.867	4.523	-15%	3.824	1%	12.696	11.804	8%
for information
NBH, NLMK Europe (EAF)	0.044	0.060	-27%	0.040	9%	0.163	0.125	30%
NLMK Group (with NBH)	3.911	4.582	-15%	3.864	1%	12.858	11.929	8%

Appendix 10. NLMK Group steel product output (without NBH)

Production, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Merchant pig iron	0.240	0.157	53%	0.389	-38%	0.488	1.152	-58%
Merchant slabs	0.867	1.338	-35%	1.057	-18%	3.396	3.836	-11%
Flat steel	2.211	2.104	5%	1.957	13%	6.411	6.176	4%
Merchant billets	0.073	0.111	-34%	0.110	-34%	0.271	0.246	10%
Long products	0.611	0.579	6%	0.581	5%	1.787	1.561	14%
Metalware	0.064	0.074	-13%	0.075	-15%	0.209	0.196	7%
Total products	4.065	4.362	-7%	4.170	-3%	12.562	13.168	-5%

Appendix 11. NLMK Russia Flat Products steel product output

Production, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Merchant pig iron	0.240	0.157	53%	0.389	-38%	0.488	1.152	-58%
Merchant slabs	1.163	2.017	-42%	1.160	0%	4.803	4.299	12%
Hot-rolled steel	0.697	0.652	7%	0.708	-2%	2.046	2.133	-4%
Cold-rolled steel	0.357	0.323	11%	0.369	-3%	1.089	1.115	-2%
Galvanized steel	0.210	0.213	-1%	0.209	0%	0.612	0.631	-3%
Pre-painted steel	0.099	0.090	10%	0.106	-6%	0.287	0.327	-12%
Dynamo steel	0.063	0.057	10%	0.065	-3%	0.181	0.193	-6%
Transformer steel	0.075	0.074	0%	0.066	13%	0.216	0.200	8%
Total steel products	2.905	3.582	-19%	3.071	-5%	9.722	10.050	-3%

Appendix 12. Output of main raw materials

Production, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Coke	1.321	1.408	-6%	1.415	-7%	4.103	4.301	-5%
Novolipetsk	0.604	0.606	0%	0.608	-1%	1.809	1.819	-1%
Altai-Koks	0.717	0.802	-11%	0.807	-11%	2.294	2.482	-8%
Iron ore	5.098	5.067	1%	4.112	24%	15.006	13.591	10%
Iron ore concentrate	2.841	2.842	0%	2.384	19%	8.483	7.850	8%
Sinter ore	0.315	0.326	-3%	0.257	23%	0.907	0.772	17%
Pellets	1.942	1.899	2%	1.471	32%	5.616	4.969	13%
Scrap	0.714	0.744	-4%	0.660	8%	1.887	1.543	22%

Appendix 13. NLMK Group steel product sales (without NBH)

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Semi-finished	1.404	1.609	-13%	1.690	-17%	4.230	5.370	-21%
Pig iron	0.245	0.133	84%	0.389	-37%	0.409	1.048	-61%
Slabs	1.068	1.337	-20%	1.215	-12%	3.488	4.090	-15%
Billet	0.090	0.139	-35%	0.086	5%	0.334	0.232	44%
Flat steel	2.086	2.041	2%	2.037	2%	6.182	6.197	0%
Plate	0.131	0.163	-20%	0.097	35%	0.469	0.383	22%
Hot-rolled steel	1.023	0.904	13%	0.887	15%	2.884	2.712	6%
Cold-rolled steel	0.390	0.406	-4%	0.480	-19%	1.227	1.413	-13%
Galvanized steel	0.320	0.334	-4%	0.315	2%	0.933	0.968	-4%
Pre-painted steel	0.069	0.096	-29%	0.129	-47%	0.246	0.322	-24%
Transformer steel	0.069	0.077	-10%	0.064	9%	0.214	0.199	8%
Dynamo steel	0.055	0.062	-11%	0.066	-17%	0.182	0.200	-9%
Other metal products*	0.029	0.000	0%	0.000	0%	0.029	0.000	0%
Long products	0.657	0.679	-3%	0.716	-8%	1.970	1.734	14%
Long	0.600	0.599	0%	0.642	-7%	1.770	1.542	15%
Metalware	0.057	0.080	-29%	0.074	-23%	0.200	0.192	4%
Total steel products	4.146	4.329	-4%	4.443	-7%	12.383	13.300	-7%

Appendix 14. NLMK Group home and export steel product sales (with NBH)

Sales, m t	Q3 2021	Q2 2021	QoQ	Q3 2020	YoY	9M 2021	9M 2020	YoY
Home	2.764	2.772	0%	2.770	0%	8.266	8.116	2%
Russia	1.694	1.817	-7%	1.851	-9%	5.186	5.065	2%
USA	0.586	0.502	17%	0.366	60%	1.519	1.234	23%
EU	0.485	0.453	7%	0.552	-12%	1.560	1.818	-14%
Export	1.438	1.411	2%	1.827	-21%	4.029	5.203	-23%
Total steel products	4.203	4.183	0%	4.596	-9%	12.294	13.319	-8%

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