Page 54 - UKRRptAug21

9.2.11 Metallurgy & mining corporate news
● Metinvest
Steel production at Ukraine’s largest producer Metinvest (METINV) was 25.5 kt per day (or 765 kt per month) in June, a 9.8% m/m increase, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. Ilyich Steel reported a 14.3% m/m jump in steel production to 12.2 kt per day, while Azovstal’s output gained 6.0% m/m to 13.3 kt per day in June. The holding's hot iron output jumped 13.0% m/m to 27.3 kt per day. In 1H21, Metinvest's steel output was 4.36 mmt (24.1 kt per day), or 9.9% more y/y.
Private joint stock company Pokrovske Coal produced 3.37 mmt of raw coking coal (18.6 kt per day) in 1H21, a 19.7% y/y rise, according to Concorde Capital’s analysis of Ukraine's Energy Ministry data. In 2020, Pokrovske Coal’s output was 6.13 mmt of raw coking coal (16.8 kt per day), a 22.6% y/y rise. In 2019, Pokrovske Coal produced 5.0 mmt of coal (13.7 kt per day), a 25.8% y/y jump. Metinvest (METINV), Ukraine's largest steelmaker, in March increased its effective interest in the so-called Pokrovske coal business, which includes Pokrovske Coal, to a controlling stake. Pokrovske Coal intends to launch four new longwalls, three in July and one in August, with the total reserves of 5.3 mmt of raw coal, according to a June 25 report by GMK Center, an industry consultancy. Pokrovske Coal will increase its coal mining volume by 25% y/y in 2021, according to Metinvest’s CEO Yuriy Ryzhenkov, Interfax-Ukraine reported on June 23.
● Interpipe
Railway product sales volume at Ukraine’s largest pipe and railway wheel producer Interpipe (INTHOL) was 15.5 kt in June, a 2.9% m/m increase, according to the company’s monthly operational report released on July 19. Pipe sales jumped 23.3% m/m to 59.6 kt, while external billet sales dropped 57.8% m/m to 3.4 kt. Total sales volume advanced 9.9% m/m to 78.5 kt in June.
The m/m jump in pipe sales in June was led by a surge in OCTG pipes (+49.3% m/m to 19.0 kt) and a further increase in line pipes (+19.1% m/m to 35.5 kt). Robust demand in the US and CIS drove the OCTG pipe sales in June, while line pipe sales rose due to growing demand in Europe, MENA and Ukraine, Interpipe said.
During 1H21, Interpipe’s pipe sales added 9.1% y/y to 257.8 kt, driven mostly by a 59.1% y/y surge for OCTG pipes to 70.5 kt. Line pipe sales inched up 3.5% y/y to 150.6 kt, while sales of mechanical pipes added 16.7% y/y to 10.6 kt. However, welded pipe sales dropped 29.9% y/y to 26.2 kt in 1H21.
Railway product sales dropped 20.6% y/y to 83.0 kt in 1H21, driven by a 25.5% loss for wheels to 68.1 kt, partially offset by a 19.1% increase for wheelsets to 12.3 kt.
Interpipe boosted its external billet sales 45.0% y/y in 1H21 to 29.8 kt.
54 UKRAINE Country Report August 2021 www.intellinews.com