WOOD Flash – NLMK: 2Q18 trading update – volumes up in the US
NLMK has just announced its 2Q18 trading update. Group steel sales grew 4% yoy and 6% qoq, due to stronger seasonal demand in 2Q and an overall improvement in pricing vs. 2017. Growth in sales to “home markets†grew 2% qoq and was flat yoy, reflecting this trend. Finished steel sales were up 9% qoq (reflecting the seasonal trend), but down 7% yoy due to the slowdown in construction activity because of the World Cup. One of the main drivers of the sales growth was a 15% qoq increase in US sales, despite the imposition of tariffs on Russian steel, as the high level of prices incentivised greater sales. Guidance on pricing trends appears relatively flat qoq, but falling coal prices (down 7% qoq in global indices), the weaker rouble and a better product mix qoq should be supportive for continued high margins qoq, in our view. We do not expect a significant market reaction to these numbers.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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