Page 60 - UKRRptOct18

own concentrate," Dmytro Khoroshun at Kyiv-based brokerage Concorde Capital wrote in a note on September 27. "Such a use of Ferrexpo’s funds is arguably better than alternatives such as stripping and storing lean ore for many years."
Ukraine's largest steel pipe producer Interpipe increased pipe production by 22.8% year-on-year to 521.2 tonnes in January-August, according to Concorde Capital’s analysis published on September 18. In August alone, the company's pipe production stood at 2.27 tonnes per day (or 70.5 tonnes per month), a 0.3% month-on-month decrease. Interpipe NTRP pipe production dropped 2.3% m/m to 0.83 tonnes per day in August. Interpipe NMPP output rose 7.2% m/m to 0.38 tonnes per day. Interpipe Niko Tube output decreased 1.2% m/m to 1.06 tonnes per day. Concorde's Dmytro Khoroshun believes that Interpipe’s daily pipe production volume remained strong in August, but the analyst is worried about the drop in crude steel production at Interpipe Steel, which might signal a drop in pipe production ahead.
Pipe production at Ukraine’s largest producer Interpipe was 2.27 kt per day (or 70.5 kt per month) in August, a 0.3% m/m decrease , according to Concorde Capital’s analysis of a Sept. 17 news report by Interfax-Ukraine. Interpipe NTRP pipe production dropped 2.3% m/m to 0.83 kt per day in August. Interpipe NMPP output rose 7.2% m/m to 0.38 kt per day. Interpipe Niko Tube output decreased 1.2% m/m to 1.06 kt per day. In 8M18, Interpipe’s pipe production was 521.2 kt, or 22.8% more y/y. In a separate news report, Interfax-Ukraine said that Interpipe Steel’s output of crude steel was 2.48 kt per day in August, a 15.4% m/m plunge. The 8M18 steel output at Interpipe Steel was 660 kt, a 16.0% y/y jump. “Interpipe’s daily pipe production volume remained strong in August, but we are worried about the drop in crude steel production at Interpipe Steel, which might signal a drop in pipe production ahead. We therefore revise our forecasts and now expect the company to produce 0.75 mmt of pipes in 2018, up 14% y/y (previously we expected 0.77 mmt of pipes in 2018). We continue to think the time is right for Interpipe and its creditors to move forward with the debt restructuring the company has recently proposed,” Dmytro Khoroshun of Concorde Capital said in a note.
Steel production at Ukraine’s largest producer, Metinvest , was 19.6 kt per day (or 608 kt per month) in August , a 2.9% m/m increase in average daily terms, 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. (Production at Metinvest’s Yenakiyeve Steel was halted in February 2017). No attributable portion of Zaporizhstal’s (ZPST UK) result is included. Ilyich Steel reported a 4.2% m/m drop in steel production to 8.8 kt per day, while Azovstal output jumped 9.4% m/m to 10.8 kt per day. The holding's hot iron output decreased 2.0% m/m to 21.6 kt per day in August. During 8M18, Metinvest's steel output was 4.98 mmt, or 4.0% less y/y. Excluding Yenakiyeve Steel, which Metinvest does not control anymore, the holding’s output rose 2.8% y/y in 8M18. In September, Azovstal might stop its oxygen converter No. 1 for planned maintenance, which will result in a steel output decrease of about 25% m/m to 15 kt per day, we calculate. We expect Metinvest's 2018 steel output at about 7.3-7.5 mmt, or 3-5% less y/y.
Ukraine’s largest iron ore pellet exporter Ferrexpo invested $52.9mn in its Ukrainian assets during January-June , Interfax news agency reported on September 13. Capital expenditure at Ferrexpo Poltava Mining, Ferrexpo’s main asset, amounted to $35.1mn, of which $12.5mn was spent on sustaining
60 UKRAINE Country Report October 2018 www.intellinews.com