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pricing approach of electricity produced by coal-fired power plants, Andriy Gerus, the presidential representative to the Cabinet, said on June 14. The bill will propose postponing the launch of the new model of the wholesale electricity market by one year to July 2020. Also,” it is suggested that the Rotterdam Plus formula will be cancelled, and instead a new approach will be introduced, which can be called Rotterdam Minus,” Gerus said, as reported by Interfax-Ukraine. He clarified that there will be no logistics surcharge to the API2 coal price (hence the "Plus"), but instead some discount will be applied to the coal price that is a function of coal’s quality. The discount will be 1% to 10%, Gerus estimated.
9.1.11 Metallurgy & mining sector news
Ukraine climbs global steel production rankings for April 2019 following 12.6% production boost. Ukrainian metallurgical enterprises posted a 12.6% year-on-year increase in steel production during April 2019. The country’s total monthly output of 1.94mn tons allowed Ukraine to climb one position to twelfth in the industry’s global ranking compiled by the World Steel Association. Ukraine’s production growth in April was approximately double the global average of 6.4%. The world’s top steel producer is currently China followed by India, Japan, the United States, and South Korea. Metallurgical products are a key Ukrainian export, with iron and steel accounting for approximately 21% of the country’s total exports in 2018 with an estimated value of $9.9bn.
67 UKRAINE Country Report July 2019 www.intellinews.com