Metals and Mining

The April 27 AGM of Donetsk Metal Rolling [DMPZ UZ, SELL] confirmed our view that the situation there is very difficult.

Khartsyzk Pipes & Tubes [HRTR UZ, N/R] will supply the total of 480 thsd mt of large-diameter pipes for Central Asia – China (CAC) natural gas pipeline.

Metal Bulletin reports that the Metinvest Group plans to launch a brand new Mill 390 at Makiivka ISW. According to Andrey Parkhomchuk, the sales director of Metinvest’s steel and rolled products division, after the launch of the 500-600 tpa (42-50 mt per month) mill, the Metinvest Group as a whole will decrease its sales of semi-finished products to only 50 mt per month.

The Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], is making progress with the construction of Blast Furnace No. 3, according to a Metinvest Holding press release.

According to Metal-Courier, on April 14, Zaporozhkoks [ZACO UZ, N/R] shut down coke battery No. 1. The design capacity of CB No. 1 was 910 thsd tpa, actual productive capacity was 545 thsd tpa. Zaporozhkoks plans to eventually erect a brand new CB No. 1-bis with 860 thsd tpa capacity.

On April 13, Nikopol Ferroalloys [NFER UZ, SELL] released its 2008 annual report.

According to the 2008 annual report, the financial situation at Donetsk Metal Rolling [DMPZ UZ, SELL] is very difficult.

Yasynivka Coke [YASK UZ, U/R] signed a credit line agreement with Sberbank (Ukraine) at the end of March.

Ukrainian News reported on coke production for March, which amounted to 1.45 mln mt. This is up 19% MoM, but still 11% below the average 2008 monthly output of 1.63 mln mt, and 15% below the average 2007 monthly reading of 1.72 mln mt.

According to investor relations, the March 20 AGM of Khartsyzk Pipes & Tubes [HRTR UZ, N/R] decided to declare USD 158.1 mln in dividends for 2008.