Metals and Mining

Shareholders of ArcelorMittal Kryvyy Rih [KSTL UZ, U/R] decided at their June 11 AGM to reinvest fully the 2008 profits and not to declare dividends for that year.

Uryadovyy Courier (an official Cabinet publication) reported that on May 12 a local tax authority filed a bankruptcy claim against Silur [SILUR UZ, N/R]. Kommersant-Ukraine cited the company’s CEO in reporting that the total claims amount to UAH 220 mln (USD 28.6 mln).

Ukrainian News reported on iron, crude steel, and rolled products production for May.

Ukrainian News reported on pipe production for May, which amounted to 133.1 thsd mt. This is up 13% MoM, but still 36% below the average 2008 monthly output of 208.8 thsd mt.

Ukrainian News, a news agency, ran an interview with Vitaliy Kornievskiy, interim CEO of Dniprospetsstal [DNSS UZ, U/R]. Kornievskiy reported a loss (either net or before tax) of UAH 46.9 mln (USD 6.1 mln) for 1Q09. The company is probing various sources in order to finance several CapEx projects (total of about USD 90 mln until 2012), including debt and financing from equipment suppliers.

Ukrainian News reported on coke production for May, which amounted to 1.41 mln mt. This is up 7% MoM, but still 14% below the average 2008 monthly output of 1.63 mln mt, and 18% below the average 2007 monthly reading of 1.72 mln mt.

Ukrainian News reported that Zaporizhstal [ZPST UZ, U/R] is proceeding with its large-scale CapEx program. It was revealed that the construction of sinter and oxygen converter shops has a budget of USD 1.3 bln (earlier estimates were USD 1.7-2.0 bln). The company had already paid EUR 40 mln (supposedly, to Siemens-VAI) for the preparation of the project’s technical documentation.

According to Metal Courier, a CIS metallurgy and mining research group, prices for K coal concentrate in Ukraine decreased further in May to USD 63 per mt from USD 65 per mt in April. Zh coal concentrate dropped to USD 61 per mt in May from USD 67 per mt in April. The price for imported Russian coal concentrate decreased from USD 66 (April) to USD 62 (May) per mt.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, U/R], or simply Petrovka, reported its FY08 financial results.

The April 24 AGM at Mariupol Illich Iron & Steel Works [MMKI UZ, U/R] went mostly as planned. In particular, the entire FY08 net income, USD 258 mln, will be reinvested.