Metals and Mining

ArcelorMittal Kryvyy Rih [KSTL UZ, U/R] increased crude steel output to 263 thsd mt in December, according to Metal Courier estimates, which is up 23% MoM but, nevertheless, as much as 51% below the average 11M08 level of 542 thsd mt per month.

Dnipropetrovsk Iron & Steel Works named after Petrovsky [DMZP UZ, U/R], or Petrovka, dropped crude steel output to 44 thsd mt in December, according to Metal Courier estimates, which is down 28% MoM and as much as 54% below the average 11M08 level of 95 thsd mt per month.

According to Metal Courier estimates, Dniprovsky Iron & Steel Works named after Dzerzhinsky, or simply Dzerzhynka [DMKD UZ, U/R], produced 338 thsd mt of steel in December, which is up 64% MoM and even 24% above the 11M08 monthly average of 272 thsd mt.

Azovstal [AZST UZ, U/R] is expected to have decreased crude steel output by just 1% MoM in December to 206 thsd mt, according to Metal Courier. This is 57% below the 11M08 average of 481 thsd mt.

In December, Alchevsk ISW [ALMK UZ, U/R] smelted 283 thsd mt of crude steel, according to estimates by Metal Courier. December’s volume is 10% up MoM, but still 45% below the 11M08 average of 376 thsd mt.

According to Metal Courier, CJSC YuTiST, a small Ukrainian pipes and tubes producer, is going to report going into sanation on December 27.

According to various press reports, the Midland Group, which controls about 48% of Zaporizhstal [ZPST UZ, U/R], intends to split.

At a December 17 EGM, shareholders of Zaporizhstal [ZPST UZ, U/R] voted to recall their July 30 dividends decision for 2007. The 100%, UAH 0.21 (USD 0.025 at USD/UAH 8.2) per share dividends will not be paid. Instead, most of the 2007 profits (UAH 487.1 mln, USD 59.4 mln) will be directed towards modernization. A small portion (UAH 40.6 mln, USD 5.0 mln) will be directed towards equity investments.

In November, Yasynivka Coke [YASK UZ, U/R] produced 81 thsd mt of 6%-humidity gross coke, 10% less than in October and 37% lower than the average monthly 11M08 level of 129 thsd mt, according to Interfax-Ukraine. The total 11M08 production volume of 1.42 mln mt is down 10% YoY.

The Interpipe Novomoskovsk Pipe-Production Plant [NVTR UZ, U/R] produced 5.5 thsd mt of pipes in November, down 70% MoM, according to Interfax-Ukraine. The November volume is 78% lower than the monthly average for 11M08, 25.1 thsd mt. The total 11M08 output, 276 thsd mt, is nevertheless still 7% up YoY.