Page 64 - UKRRptAug19

9.2.11 Metallurgy & mining corporate news
● Metinvest
Ukraine’s largest steelmaker Metinvest reported on July 30 a 2% qoq increase in steel production to 1.982 mmt 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 3.923 mmt 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, 2.051 mmt, 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 4.008 mmt 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. The holding’s finished product output inched up 2% qoq in 2Q19 to 1.537 mmt due to a 3% qoq rise in hot-rolled plate output to 913 kt, a 9% qoq gain in galvanized coil output to 105 kt, and a 5% qoq increase in long product output to 200 kt.
Steel production at Ukraine’s largest producer Metinvest was 17.5 kt per day (or 526 kt per month) in June, a 25.7% m/m plunge, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. That result includes Azovstal (AZST UK) and Ilyich Steel (MMKI UK) figures. Ilyich Steel reported a 19.7% m/m loss in steel production to 8.2 kt per day, while Azovstal’s output dove 30.4% m/m to 9.3 kt per day in June. The holding's hot iron output dropped 22.8% m/m to 18.5 kt per day. In 1H19, Metinvest's steel output was 3.92 mmt, or 3.7% more y/y.
● Interpipe
Interpipe NTRP plant reaps benefits of lucrative railcar wheel market Interpipe NTRP, a subsidiary of Ukraine’s largest pipe producer Interpipe (INPIP), boosted its EBITDA 44% y/y to $74.7mn in 1H19, according to the company’s quarterly financial report published on July 30. The plant’s revenue improved 8% y/y to $283.7mn in 1H19. The sale price for railcar wheels jumped to 1,683 $/t in 1H19, which is 39% higher than the average price for 2018, according to Concorde Capital's analysis of Interpipe NTRP financial data.
● Ferrexport
Ukraine’s largest iron ore pellet exporter Ferrexpo produced 967 kt of pellets in May, which amounts to 31.2 kt per day, a 1.2% m/m decrease, according to our analysis of the data Interfax-Ukraine reported on July 1. In 5M19, Ferrexpo’s pellet output amounted to 4.45 mmt (29.5 kt per day), a 6.4% y/y increase.
● DTEK
64 UKRAINE Country Report August 2019 www.intellinews.com