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per day, whereas output at Southern Iron Ore decreased 1.6% m/m to 33.2 kt per day. In 1H19, Metinvest’s attributable output of iron ore concentrate rose 3.6% y/y to 16.65mmt, or 92.0 kt per day.
Metinvest steel output rises 2% qoq in 2Q19. Ukraine’s largest steelmaker Metinvest (METINV) reported on July 30 a 2% qoq increase in steel production to 1.982mmt at its subsidiaries in 2Q19. Azovstal’s output rose 11% qoq to 1,079 kt in 2Q19, while Ilyich Steel’s output lost 7% qoq in 2Q19 to 903 kt due to the shutdown of oxygen converter No. 3, according to the holding’s operational update. In 1H19, Metinvest's crude steel output rose 3% y/y to 3.923mmt due to a 16% y/y jump at Ilyich Steel that was partially offset by a 6% y/y drop at Azovstal. The holding’s hot iron output in 2Q19, 2.051mmt, rose 5% qoq due to the shortage of raw materials experienced in 1Q19, Metinvest said. Its 1H19 hot iron production lost 7% y/y to 4.008mmt due to an unstable supply of raw materials, as well as shutdowns of two blast furnaces at Azovstal, according to the release. The 2Q19 output of semi-finished products at Metinvest jumped 31% qoq to 815 kt as its merchant pig iron output rose 48% qoq to 332 kt and its slab output gained 21% qoq to 483 kt. Metinvest noted that the 85 kt qoq increase in slab output was due to a 118 kt rise at Azovstal that offset the 33 kt in losses at Ilyich Steel.
Metinvest starting up blast furnace at Azovstal. Azovstal, a subsidiary of Ukraine’s largest steel producer Metinvest (METINV), is starting up blast furnace (BF) No. 3, according to an August 13 report by news.bigmir.net, a news site, which cited Metinvest’s press service.
Metinvest moves to consolidate minor Pokrovske Coal asset companies The Antimonopoly Committee of Ukraine (AMCU) started in August its consideration of granting permission to Metinvest B.V., the main holding company of Ukraine’s largest steelmaker Metinvest (METINV), for the consolidation of some companies comprising the so-called Pokrovske Coal (PC) assets, the AMCU said in an August 22 press release. In detail, the AMCU is considering granting Metinvest B.V. the right to consolidate directly more than 50% in Industrial Coal Holding LLC (ICH), which owns a 57.3% stake in private joint stock company (PrJSC) Pokrovske Coal (SHCHZ UK), Ukraine’s largest miner of coking coal. In August 2018, it became known that Metinvest B.V. had recently acquired 24.99% in ICH. The AMCU said it is also considering allowing Metinvest to consolidate more 50% in three other minor companies that also belong to Pokrovske Coal assets, adding that these stake consolidations are a part of a transaction whose goal is to obtain control over the production and sales of coking coal and mining equipment, as well as over other unspecified activities. The AMCU is soliciting submissions regarding the implications on the coking coal and coking coal concentrate markets until September 22. Recall, Metinvest purchased 24.99% in Pokrovske Coal assets in July 2018 together with what the holding said were its four co-investors.
● Interpipe
Ukraine’s largest pipe producer Interpipe (INPIP) has launched the restructuring of its debt, according to documents filed with US Securities and Exchange Commission on Aug. 15. The company commenced consent solicitation on Aug. 14 with a deadline of 10 am London time on Aug. 27, on which date it will announce the results.Within the solicitation, the company offers the holders of its existing notes, per $1,000 of the notional existing note amount, the combination of the following considerations: (a) $410.53 in new notes; (b) about $108 in restructuring fees, according to Concorde Capital
81 UKRAINE Country Report September 2019 www.intellinews.com