Page 71 - UKRRptJul19

9.2.11 Metallurgy & mining corporate news
● Metinvest
Steel production at Ukraine’s largest steel producer Metinvest declined by 2.3% month-on-month to 23.6 tonnes per day (or 732 tonnes per month) in May, according to Concorde Capital’s calculations published on June 5. That result includes Azovstal and Ilyich Steel figures. Ilyich Steel reported a 9.0% m/m loss in steel production to 10.3 tonnes per day, while Azovstal’s output rose 3.5% m/m to 13.4 tonnes per day in May. The holding's hot iron output slid 3.9% m/m to 24 tonnes per day. In January-May, Metinvest's steel output was 3.4mn tonnes, or 8.3% more year-on-year. Concorde's Dmytro Khoroshun wrote in a note that Metinvest has demonstrated strong steel production volumes so far in 2019, averaging 22.5 tonnes per day. He expects Metinvest’s 2019 steel production to reach 8mn-8.3mn tonnes, up 9%-14% y/y. The management’s recent guidance for 2019 was 8.32mn tonnes (up 14% y/y).
Metinvest iron ore concentrate output rises 3% in 5M19 The attributable production of iron ore concentrate at the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer, amounted to 2.85 mmt (91.9 kt per day) in May, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 1.4% m/m loss on a daily average basis. The holding’s pellet output was 791 kt in May, a 13.1% m/m drop on a daily average basis. Concentrate production at Inhulets Iron Ore gained 0.3% m/m in May to a daily rate of 31.2 kt. Production at Northern Iron Ore slid 1.1% m/m to 33.8 kt per day. Production at Central Iron Ore dropped 4.3% m/m at 11.4 kt per day, whereas output at Southern Iron Ore decreased 3.2% m/m to 33.8 kt per day.
Metinvest stops a converter and a blast furnace for repairs Metinvest, Ukraine’s largest steel producer, stopped oxygen converter No. 1 at Azovstal on June 11 for repairs that will last until the month’s end with a possible extension to July, according to a June 13 report by Metal Expert, an industry consultancy. Recall, Azovstal shut down two blast furnaces in early June. Metinvest also shut down blast furnace No. 5 at Ilyich Steel for repairs that will last 45 days, according to a June 14 report by mariupolnews.com.ua, a local news site, which did not specify when the repairs started. Recall, Ilyich Steel shut down oxygen converter No. 3 in late May for repairs.
Metinvest affiliate Pokrovske Coal boosts coal production 21% m/m in May. Private joint stock company Pokrovske Coal produced 13.2 kt of raw coal per day in May, a 20.6% m/m jump, according to Concorde Capital’s analysis of Energy Ministry data, as reported by Interfax-Ukraine on June 19. In 5M19, Pokrovske Coal produced 1.77 mmt of coal, a 3.4% y/y drop. Recall, Pokrovske Coal said in its 2018 annual report that it plans to boost coal production 42% y/y to 5.63 mmt in 2019.
Metinvest attracted an export credit agency (ECA) loan for construction of an air-separation unit (ASU) at Ilyich Steel, according to Metinvest’s June 15 press release. The ASU equipment will be provided by Air Liquide (France), and the construction, to be finished by the end of 2021, will be performed by Metinvest’s own personnel, the company said, adding that the project’s total cost will amount to $78.3mn. Metinvest said that the new ASU unit will supply oxygen to Ilyich Steel’s blast furnaces and will result in energy savings of 20%. Ukraine’s President Zelenskiy attended the signing of Metinvest’s contract with Air Liquide. The ECA loan will involve France’s export credit agency, Bpifrance
71 UKRAINE Country Report July 2019 www.intellinews.com