Metals and Mining

Yasynivka Coke [YASK UZ, U/R] produced 90 thsd mt of 6% water content gross coke in October, 31% less than in September and 35% lower than the average monthly 9M08 level of 139 thsd mt. For comparison, the overall sector output volume dropped 18% MoM in October.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], smelted 180 thsd mt of steel in October, just 12% down MoM, according to Interfax-Ukraine. Last month’s output is only 27% below the 9M08 average of 247 thsd mt, and 35% lower than the peak 278 thsd mt output in March 2008.

Interfax-Ukraine reported steel production numbers for October. According to our calculations, the total crude steel output of Ukrainian steelmakers amounted to 1.86 mln mt last month. This is 25% below the September reading of 2.48 mln mt, 47% down from the 9M08 average of 3.51 mln mt, and 52% below the peak value of 3.92 mln mt in May 2008.

Azovstal [AZST UZ, U/R] decreased crude steel output by just 14% MoM in October to 412 thsd mt, according to Interfax-Ukraine. This is 21% below the 9M08 average of 519 thsd mt, and 25% below the peak output of 551 thsd mt in June 2008.

In October, Alchevsk ISW [ALMK UZ, U/R] smelted 141 thsd mt of crude steel, according to Interfax-Ukraine. October’s volume is 52% down MoM, 67% below the 9M08 average of 423 thsd mt, and 73% lower than the peak output of 516 thsd mt in May 2008.

Nikopol Ferroalloys [NFER UZ, N/R] will be forced to shut down in November. According to the CEO Vladimir Kutsin, the company is well-supplied with manganese ore, and the problem is lack of orders.

In October, Alchevsk ISW [ALMK UZ, U/R] plans to produce 130-135 thsd mt of pig iron, according to Metal Courier. We estimate that steel output will amount to 160 thsd mt, which is down 45% MoM, 62% below the 9M08 monthly average, and 51% below the 2007 monthly average.

Shareholders of Azovstal [AZST UZ, U/R], at their October 25 AGM, decided to declare dividends for 2006-2007 and dropped voting on dividends for 2002-2005.

According to Metal Courier, Bagliy Coke [BKOK UZ, U/R] had, on October 13, put its coke battery No. 7-bis into hot idling mode. Metal Courier reports that the poor demand was the reason for the decision.

The Metinvest Group got a formal approval for its plan to construct a coal transloading terminal in Sevastopol. The approval came from Ukrinvestexpertise, a state enterprise charged with evaluating various aspects of construction and investment procedures, including ecological and safety.