Page 82 - UKRRptNov21

pipe sales dropped 4pp to 25%.
The share of Interpipe’s railway product sales in Ukraine in 9M21 dropped 3pp from 2020 to 11%, while the share of sales to Europe retreated 2pp to 33%. The share of sales to CIS countries dropped 2pp to 41%. The share of sales in the Americas added 2pp to 5%, and sales in other countries jumped 5pp to 6%.
Regarding production volumes, which might be indicative of sales volumes in the coming months, Interpipe’s pipe production rose 10.4% m/m to 66.3 kt in September, and particularly its production of OCTG pipes jumped 20.4% m/m to 26.3 kt. Its railway product output slid 1.7% m/m to 14.9 kt in September, while steel production inched up 1.9% m/m to 96.9 kt.
● Ferrexport
Ferrexpo Yeristovo Mining (FYM), a subsidiary of Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN), was fined UAH786mn ($30mn) for illegal waste disposal, according to a November 2 press release by the State Environmental Inspectorate (SEI) of Ukraine. FYM did not have the proper documents for 160 ha of land on which it stored waste, the SEI said citing its head Àndrii Malovanyi, adding that it will go to court if FYM does not pay the fine voluntarily. In 2020, the SEI developed changes to its methodology for calculating damages and fines for land pollution, the release said. The changes took effect in early 2021 and resulted in an increase of the damage estimates and fines, according to Malovanyi. In September, the SEI fined ArcelorMittal Kryvyi Rih (AMKR), a Ukrainian steelmaker and iron ore miner, UAH457mn ($17mn), also qualifying AMKR’s waste storage on some land as illegal because the company did not have the proper documents.
Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) produced 723 kt of pellets in September, which amounts to 24.1 kt per day, or a 14.1% m/m drop, according to Concorde Capital's analysis of the company’s 3Q21 production report released on October 6. In 9M21, Ferrexpo’s pellet output amounted to 8.16 mmt (29.9 kt per day), or 0.3% more y/y. Ferrexpo noted in the report that its 3Q21 pellet production volume, 2.60 mmt, dropped 9% qoq due to a planned pelletizer maintenance in September and an upgrade of the fourth pelletizer during 3Q21.
Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN) announced its inaugural decarbonization targets in an October 11 release. The company plans to achieve a minimum of 30% reduction, on a per ton basis, in combined Scope 1 and 2 emissions by 2030 against the 2019 baseline year. According to Ferrexpo’s 2020 responsible business report (RBR), in 2019 it emitted 133.6 kg of CO2 per ton of pellets produced, comprising 55.1 kg/t of Scope 1 (including from consumption of diesel, 23.5 kg/t, and natural gas, 22.8 kg/t) and 78.5 kg/t of Scope 2 (mostly 76.1 kg/t from electricity consumption). In 2020, its Scope 1 and 2 CO2 emissions dropped 16% y/y to 112.6 kg/t, according to the 2020 RBR. By June 2021, Ferrexpo had recorded a reduction in excess of 20%, according to the release. Ferrexpo also commits to achieve net zero carbon emissions from its operations by 2050, the release said. The company has engaged climate specialists Ricardo plc to develop science-based reduction targets and a timeline for the stages of decarbonization.
82 UKRAINE Country Report November 2021 www.intellinews.com