Металлургия

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.

In October, Alchevsk ISW [ALMK UZ, U/R] performed trials on its brand new converter No. 1, but decided to shut it down due to the poor situation on steel markets.

Three steelmakers of the Metinvest Group reportedly decreased output of semi-finished products by about 50%, from 340-370 thsd mt per month to 150-170 thsd mt per month.

On October 13, Bagliy Coke [BKOK UZ, U/R] may have started to shut down its coke battery No. 7-bis. For more than two years, since 2005, the brand new coke battery, with a 490 thsd tpa capacity, had been in a hot idling mode until being launched on July 30, 2008.

Yasynivka Coke [YASK UZ, U/R] produced 130 thsd mt of 6% water content gross coke in September, 8% lower than in August and 7% lower than the average monthly 8M08 level of 140 thsd mt.

Due to the deterioration of short-term prospects for the entire coke sector, we have put the following stocks under review: Avdiivka Coke [AVDK UZ, U/R], Yasynivka Coke [YASK UZ, U/R], and Bagliy Coke [BKOK UZ, U/R].

According to Interfax-Ukraine, which has reported coke production numbers for September, the total 6% water content gross coke output of Ukrainian coke makers amounted to 1.46 mln mt last month.