Металлургия

A large stake (206.0 mln shares, 7.93%) in Khartsyzk Pipes & Tubes [HRTR UZ, N/R] changed hands on December 02 in a single deal on PFTS, the main Ukrainian stock exchange. The price was UAH 2.15 per share (USD 0.291 at USD/UAH 7.38). The deal amounted to UAH 442.8 mln (USD 60.00 mln), bringing the valuation of the entire company to USD 757 mln.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], smelted 134 thsd mt of steel in November, down 26% MoM, according to Interfax-Ukraine. Last month’s output is 42% below the 11M08 average of 230 thsd mt.

Khartsyzk Pipes & Tubes [HRTR UZ, N/R] produced 50.9 thsd mt of pipes in November, bringing the 11M08 total to 335 thsd mt, down 32% YoY. The November production volume is up 7% MoM and 67% higher than the 11M08 monthly average (30.5 thsd mt), and a full 20% below the 2007 monthly average (42.4 thsd mt).

According to Interfax-Ukraine, November production numbers in all sectors related to steel smelting continued to decline. The data is as follows.

Azovstal [AZST UZ, U/R] decreased crude steel output by 49% MoM in November to 209 thsd mt, according to Interfax-Ukraine. This is 50% below the 11M08 average of 481 thsd mt. The overall November crude steel output in Ukraine was 1.6 mln mt, down 14% MoM and 50% below the 11M08 average.

A corporate relations officer of the Interpipe Group, Oleg Kuzmin, spoke to the Delo newspaper on the prospects of the tubes and pipes markets. Kuzmin expected the markets to stabilize only in one and a half – two years. The Group will continue to push with its mini-mill project that will secure the supply of billets for pipes. Because of the current crisis, the Group plans to cut production 57% QoQ in 4Q08. However, because of the accumulated inventories, sales will drop only 22% QoQ in 4Q08.

Shareholders of Poltava GOK [PGOK UZ, U/R] will convene at an EGM on December 30, 2008, and discuss two unexpected questions. The first question of the agenda is changing the structure of the managing bodies of the company. The second question is changing the registrar.

According to an official filing by Khartsyzk Pipes & Tubes [HRTR UZ, N/R], as of November 18, Metinvest B.V. of the Netherlands owns 76.78% of shares outstanding in the company, having just increased its stake by 10.49%. On the other hand, MetalUkr Holding Limited has just decreased its stake by 10.49% and now owns 16.22%.

Daniel Valk, the CEO of Dniprospetsstal [DNSS UZ, U/R], revealed that the company plans to produce 15 thsd mt of rolled products in November. This volume will be 39% down MoM (24.5 thsd mt in October) and 48% below the 10M08 average of 29.0 thsd mt per month.

According to Kommersant-Ukraine, Zaporizhstal [ZPST UZ, U/R] has negotiated a decrease in iron ore concentrate fine from USD 120 to USD 70 per mt. The newspaper cited Aleksandr Vilkul, the Honorary President of both Central and Pivnichnyy GOK, in reporting this development.