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by 20.8% year-on-year to 581.9 tonnes in January-September , according to calculations of Kyiv-based brokerage Concorde Capital published on October 26. The company's pipe output decreased in average daily terms by 8.2% month-on-month to 2.09 tonnes per day (or 62.6 tonnes per month) in September. Interpipe NTRP pipe production dropped 9.9% m/m to 0.75 tonnes per day in September. Interpipe NMPP output inched up 3.3% m/m to 0.40 tonnes per day. Interpipe Niko Tube output plunged 11.1% m/m to 0.94 tonnes per day. "The rebound in daily steel production in September, 3.3% m/m, was small, and therefore the daily pipe production in the fourth quarter of 2018 might remain in the 1.9-2.1 tonnes range, below the 2.2-2.3 tonnes per day range Interpipe demonstrated in March-August," Concorde's Dmytro Khoroshun wrote in a note on October 26. Concorde expects the company will produce 0.75mn tonnes of pipes in 2018, up 14% y/y. "Nevertheless, the y/y dynamic remains strong: in 2017, Interpipe produced 1.80 kt of pipes per day on average," Khoroshun added. "Therefore, we continue to think the time is right for Interpipe and its creditors to move forward with the debt restructuring the company has recently proposed."
ArcelorMittal, the world's largest steel company, plans to invest $1.5bn in the Kryvvyi Rih mining and steelmaking complex through 2022 , according to a company press release. Additionally, the company is investing $400mn this year in the Dnipropetrovsk plant. In the EU, the company is selling steel plants in a bid to buy the world’s largest steel mill, in southern Italy
ArcelorMittal, Ukraine’s largest foreign investor, received on October 12 an offer from the Liberty House Group to purchase most of its European assets. Britain’s Liberty House wants to buy Arcelor’s steel operations in the Czech Republic, Italy, Macedonia and Romania. Separately, Arcelor is negotiating the sale its assets in Belgium and Luxembourg. The sales would be part of Arcelor’s plan to buy Ilva, an Italian company that owns Europe’s largest steel plant, in Taranto. Arcelor’s statement on its Europe plans make no mention of its Ukraine holdings.
Ukraine’s largest iron ore pellet exporter Ferrexpo produced 880 kt of pellets in September , which amounts to 29.3 kt per day, a 4.8% m/m increase, according to our analysis of the company’s 3Q18 production report released on October 9. Ferrexpo noted in its report that its 3Q18 production volume, 2.66 mmt, improved 6% q/q as a result of its successful completion of a pellet line refurbishment in 2Q18. In 9M18, Ferrexpo’s pellet output amounted to 7.76 mmt, a 1.3% y/y increase. “We expect Ferrexpo to produce 10.5-10.7 mmt of pellets in 2018, resulting in around 29 kt per day and a gain of up to 2% y/y. We retain our neutral view on FXPOLN Eurobonds,” Dmytro Khoroshun of Concorde Capital said in a note.
Iron ore miner and pellet producer Ferrexpo invested $90.1mn in its Ukrainian assets during 9M18 , the Interfax-Ukraine news agency reported on October 31, citing the company’s press release. Capital expenditure at Ferrexpo Poltava Mining, Ferrexpo’s main asset, amounted to $63.8mn, of, which $21.1mn was spent on sustaining projects, $21.8mn went to large strategic projects, and $20.9mn was expended on purchases of components. The remaining $26.3mn was spent at Ferrexpo’s two other assets, Ferrexpo Yeristovo Mining and Ferrexpo Belanovo Mining.
Ukraine's leading coal and power holding DTEK increased coal output by 22% year-on-year to 2.17mn tonnes in September (on a daily average basis,
76 UKRAINE Country Report November 2018 www.intellinews.com