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to the improving global diamond market. Rapaport also reported that Alrosa had raised its rough prices during the February session 3-4% on average.
De Beers lifted rough prices by 4-5% at its 2nd sale of 2021. Rapaport reported. De Beers lifted diamond prices for a third consecutive sale as an industry wide recovery from the coronavirus pandemic gathers pace. Diamond prices are rebounding after the pandemic brought the industry to an almost complete standstill in 1H20. The price rises were once again focused on the largest and most expensive diamonds. The changes focused on rough above 1 ct, with prices of smaller diamonds stable, market insiders told Rapaport. The hikes were c2-4% in the 1-2ct category, reaching up to 10% in the 5-10ct sizes, a sightholder reported.
● Steel
Novolipetsk Metallurgical Kombinat (NLMK) reported 4Q20 IFRS results.
EBITDA adjusted for a one-off accrual came in at $793mn in 4Q20, in line with the consensus and our estimate. The headline EBITDA figure was $890mn, which included $97mn in proceeds for a settlement with the US government that provided NLMK with a refund for steel tariffs it paid under Section 232 and accrued interest. However, the payment should come in 1Q21 (as we had previously expected), so it did not affect 4Q20 FCF. The integrated cash cost of slab for the Russian flat division declined 2.4% q/q to $205/tonne thanks to a weaker ruble and a q/q increase in iron ore production. FCF declined 4% q/q to $229mn (for a 1.4% yield), which was slightly below our estimate due to cash EBITDA being lower than we had anticipated. Capex in 4Q20 was $266mn, bringing the full-year number to $1.1bn, in line with guidance. The guidance for this year was revised to $1.1-1.2bn (we had $1.1bn in our model). NLMK confirmed that its investment cycle will end in 2023, with capex falling to
153 RUSSIA Country Report March 2021 www.intellinews.com