Page 69 - UKRRptAug20

of Pokrovske Coal assets.
Metinvest iron ore concentrate output rises 3% in 5M20. ​The attributable production of iron ore concentrate at the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer, amounted to 2.94mmt (95.0 kt per day) in May, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 2.7% m/m loss on a daily average basis. The holding’s pellet output was 551 kt in May, a 2.1x m/m surge on a daily average basis. Concentrate production at Inhulets Iron Ore dropped 2.6% m/m in May to a daily rate of 31.9 kt. Production at Northern Iron Ore lost 8.8% m/m to 32.3 kt per day. Production at Central Iron Ore added 10.4% m/m to 14.4 kt per day, whereas output at Southern Iron Ore was flat m/m at 35.8 kt per day.
Metinvest steel output jumps 33% m/m in June. ​Steel production at Ukraine’s largest producer Metinvest (METINV) was 24.9 kt per day (or 748 kt per month) in June, a 33.3% m/m jump, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. Ilyich Steel reported a 31.5% m/m gain in steel production to 11.7 kt per day, while Azovstal’s output advanced 34.8% m/m to 13.3 kt per day in June. The holding's hot iron output increased 28.6% m/m to 26.3 kt per day. In 1H20, Metinvest's steel output was 3.97mmt (21.8 kt per day), or 1.1% more y/y.
Ukraine's largest steelmaker Metinvest (METINV) was removed from.
CreditWatch with negative implications by S&P on July 22. The credit rating agency also affirmed Metinvest’s issuer credit rating at B with a Stable outlook. Metinvest is now rated by S&P in line with Ukraine’s sovereign rating. S&P’s previous action on Metinvest was on Mar. 31, putting the holding’s rating on CreditWatch with negative implications. S&P cited its base-case expectations for the financial performance of Metinvest’s operations as the reason for its decision. This became possible because of strong iron ore prices at the global market, the better-than-expected performance of Metinvest’s steel division, and expectations of further recovery of steel markets, particularly in Europe, the rating agency said.
● Ferrexport
Ferrexpo’s main unit, Poltava mining and processing plant, has inaugurated a 4-year, $100mn upgrade of its iron ore concentrating plants. ​Largely based on equipment from Finland’s Metso Outotec, the new complex will boost concentrate production by 15%, to 15mn tons. This is to boost revenues by $75mn a year.
● Other
By the end of 2023, ArcelorMittal Kryvyi Rih plans to spend $700mn in steel making upgrades​ that will clean the city’s air, company CEO Mauro Longobardo told a group of environmental officials from Kyiv. Recently, the Dnipropetrovsk region steelmaker decommissioned its open-hearth shop. Upcoming: install a gas cleaning system in the converter shop, modernize blast furnace No. 9, modernize sinter shop No. 2, build a modern iron pelletizing plant, close two sinter shops and decommission two coke oven batteries. Ukraine’s largest foreign investment, ArcelorMittal Kryvyi Rih is the nation’s largest manufacturer of rolled steel. It also makes rebar and wire rod.
69​ UKRAINE Country Report​ August 2020 ​ ​www.intellinews.com