Daily monitor

Domestic wheat prices in Ukraine are following the global downgrading trend, reaching USD 136.8 per mt of industrial wheat (-53% MoM). As for coarse grain, prices began their downfall much earlier and have reached their lowest marks in three years. Prices for fodder wheat slipped to USD 105.3 (-12% MoM), while corn ended up at USD 87.7 (-33% MoM).

Cement output in September decreased by 6.2% MoM; however, considering the results for Jan-Aug, cement producers increased output by 8% up to 10.6 mln metric tons.

Azovmash – a Ukrainian freight car manufacturer and a leader in the machine-building industry –has obtained a USD 15 mln loan from the Raiffeisen Bank Aval [BAVL UZ, U/R], according to a press release issued by the bank.

Standard & Poor's Ratings Services has lowered its long-term counterparty credit ratings on Alfa-Bank Ukraine, JSC Kredobank [ZUKB UZ, U/R], and Ukrsotsbank [UCSB UZ, U/R] to 'B' from 'B+' and removed them from CreditWatch where they were placed with negative implications on October 16, 2008.

The largest Ukrainian turbine producer, Turboatom [TATM UZ, HOLD], increased its Net Revenue in 3Q2008 to USD 19.6 mln. This amount is 7.13% more than the Net Revenue for the same period a year ago. Net Income for this period increased to USD 1.2 mln, which is +425% QoQ; however, it also translates to -12.6% YoY.

The Kyiv-based Credit Rating agency has affirmed the uaBBB long-term credit rating for the issue of “A” series bonds by Kyivmedpreparat [KMED UZ, BUY], the largest antibiotics plant in Ukraine. As the agency reported, this bond issuance is equal to UAH 30 mln in value.

On Saturday, October 25, the National Electricity Regulatory Commission (NERC) – Ukraine's main energy regulatory body – approved a price hike for Ukrainian gas consumers, which is an average rate of 35%. As announced by NERC Head Valeriy Kalchenko, the new tariffs take effect as of December 1, 2008.

The Netherlands development fund Financierings-Maatschappij voor Ontwikkelingslanden N.V. opened a line of credit of USD 25 mln for Astarta Holding [AST PW, BUY] for the period of 7 years.

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.