Metals and Mining

During 5M08, Alchevsk ISW [ALMK UZ, BUY] increased rolled products output 41.3% to 1.978 mln mt. Steel output rose 37.4% to 2.151 mln. Pig iron output increased 54.6% to 1.899 mln mt, whereas sinter production actually decreased by 1% to 2.086 mln mt.

Khartsyzsk Tube Works [HRTR UZ, Sell] increased its output in May 2008 25MoM to 42 thsd metric tons of pipes. The mill also produced 109 thsd metric tons of pipes in 5M2008, reducing its production 63.5% YoY. Khartsyzsk Tube Works is the largest Ukrainian producer of large-diameter pipes and its production capacity is about 1.6 mln tons of pipes per year.

The Ukrainian government has prolonged its anti-dumping probe terms for the import of medium-diameter pipes.

The May 29 AGM of Yasinovka Coke [YASK UZ, N/R] shareholders decided not to declare dividends on common shares for 2007.

Dzerzhynka [DMKD UZ, BUY] is about to launch a 1 mln mt ladle furnace No 1. According to Metal Courier, installation is almost fully complete, and the machine should enter production by the end of 1H08, serving two blooming concasters with the total capacity of 1.4 mln mt.

Azovstal [AZST UZ, BUY] is about to launch a 2.5 mln mt concaster No 6 and a vacuum vessel. According to Metal Courier, the company is almost done tuning up these two machines.

The Ministry of Economy of Ukraine announced that quotas for Ukrainian exports of some steel products to the European Union have been abolished. Bohdan Danylyshyn, the Ukrainian economy minister, who is visiting Belgium, announced the abolition in a parenthetic statement, cited on the Ministry’s web site, following meetings with the European Commission officials.

Interpipe Nyzhnodniprovsky Pipe Rolling Works [NITR UZ, SELL] is increasing its non-destructive testing facilities, which will enable the company to hold full, non-destructive testing of its steel pipe products to improve them for consumers.

Azovstal [AZST UZ, BUY] announced an updated majority shareholder composition. According to a May 26 official filing, Metinvest B.V. of the Netherlands owns 2.959 bln shares (70.55%), and Metinvest International S.A. of Switzerland controls 0.904 bln shares (21.56%).

On May 23, shareholders of Dniprospetsstal [DNSS UZ, U/R] re-elected the Board of Directors in full at an EGM. The meeting also decided to employ Energy Registrar Company LLC as the registrar.