Daily monitor

According to the AvtoKrAZ holding company [KRAZ UZ, N/R], the largest Ukrainian truck producer decreased production volume by 95% YoY to 100 trucks in 1H09. Currently KRAZ has 350 trucks in production out of 550 units for company inventory. In the first half of the current year about 50% of KRAZ’ vehicles were exported, versus 70% in the whole 2008.

Ukrainian News reported on iron, crude steel, and rolled products production for June and 1H09.

Ukrainian News reported on pipes production for June, which amounted to 142.8 thsd mt. This is up 7% MoM, but still 32% below the average 2008 monthly output of 208.8 thsd mt.

Metal Courier reported that the two steelmakers owned by Industrial Union of Donbas (IUD), Alchevsk ISW [ALMK UZ, U/R] and Dzerzhynka [DMKD UZ, U/R], will stop importing Russian iron ore materials and switch back to purchasing source materials at the domestic market.

Ukrainian News reported on coke production for June, which amounted to 1.36 mln mt. This is down -4% MoM, 17% below the average 2008 monthly output of 1.63 mln mt, and 21% below the average 2007 monthly reading of 1.72 mln mt.

The Enakievo ISW group [ENMZ UZ, U/R], which includes OJSC Enakievo Iron & Steel Works, may extend the construction of Blast Furnace No. 3 until 4Q10, according to Metal Courier. The plans announced in April by Metinvest Holding called for completion in 2Q10.

Myronivsky Khliboprodukt [MHPC LI, BUY], one of Ukraine’s biggest land owners by land under lease rights, is going to increase its land bank by 40% to 250 thsd ha before 2011. The company operates 180 thsd ha at the moment. MHP’s CEO, Mr. Kosyuk, stated that the MHP is going to expand its positions on the domestic oil market and expects to control 10% of the domestic sunflower seed supply over the next 5-7 years.

The EBRD is preparing to provide USD 134.5 mln to Ukreximbank. According to a statement on the EBRD website, part of the funds will be raised in the form of a syndicated loan involving Standard Bank Plc., Deutsche Pfandbriefbank AG, CALYON, Citibank N.A., London Branch, UniCredit Bank Austria AG, Bayeriche Hypo- und Vereinsbank AG.

Forum Bank[FORM UZ, U/R] has announced that shareholders are considering a capital increase. The proposed increase comes via the issuance of an additional 110 mln shares with a par value of UAH 10 in order to raise UAH 1.1bln (USD 144 mln). The question will be considered at an EGM on August 19.

According to a note from the National Bank of Ukraine, FDI fell to USD 1.8 bln in January-May, compared to USD 4.3 bln a year ago.