Metals and Mining

Due to the current crisis on steel markets, we have put all Ukrainian steelmakers under review. Due to the current crisis on steel markets, we have put all Ukrainian steelmakers under review.

Krasnodonvugillya, the main coking coal producer of the Metinvest Group, has been shut down after an October 04 methane blast at one of its mines, Duvannaya, killed 6 miners. Krasnodonvugillya, the main coking coal producer of the Metinvest Group, has been shut down after an October 04 methane blast at one of its mines, Duvannaya, killed 6 miners.

Zaporizhstal [ZPST UZ, Strong BUY] decreased crude steel output to 283 thsd mt in September, according to Interfax-Ukraine, down 23% from the average 8M08 level of 365 thsd mt per month.

According to Interfax-Ukraine, Dniprovsky Iron & Steel Works named after Dzerzhinsky, or simply Dzerzhynka [DMKD UZ, BUY], produced 217 thsd mt of steel in August, down as much as 63% from the 8M08 average of 316 thsd mt.

Interfax-Ukraine reported steel production numbers for September.

Khartsyzk Pipes & Tubes [HRTR UZ, N/R] produced 39.2 thsd mt of pipes in September, bringing the 9M08 total to 235 thsd mt, down 46% YoY.

Zaporizhstal [ZPST UZ, Strong BUY] decreased crude steel output to 250-270 thsd mt in September, according to Metal Courier; this is about 35-40% below the average 8M08 level of 417 thsd mt per month.

Alchevsk ISW [ALMK UZ, BUY] plans to launch the 3 mln mt oxygen converter No. 1, the company’s second, on September 19-20. According to Metal Courier, the company will simultaneously retire a total of 1.4 mln tpa of open hearth steel smelting capacities.

Evraz Group [EVR LI, N/R] announced on September 11 that it has closed the acquisition of 48.6% of shares in Palmrose Ltd of Cyprus.

At a September 10 EGM, shareholders of the Dnipropetrovsk Metallurgical Plant named after Komintern, or Kominmet [DMZK UZ, N/R], approved a share capital increase plan.