IUD steelmaking subsidiaries issue output results for January-August

In the January to August period of the current year the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass produced a total of 4.331 million tons of pig iron up, by 25% YoY.
The subsidiaries’s crude steel output in the given period increased by 23% YoY, to 4.613 million tons. In the first eight months of 2011 IUD companies registered a 27% increase in their finished steel production YoY to 4.455 million tons, while their agglomerate output went up by 15% YoY to 6.618 million tons.
In particular, in January to August Alchevsk Iron and Steel Works saw a 29% increase in its crude steel production to 2.521 million tons and a 36% increase in its finished steel production to 2.495 million tons.
The crude steel output of Dneprovsky Iron and Steel Works named after F. Dzerzhinsky in the given period increased by 18% YoY to 2.092 million tons, while its finished steel output increased by 17% YoY to 1.961 million tons.
Alchevsk Coking Plant saw its coke production fall by 6% YoY to 1.896 million tons in January to August 2011. In the given period Dniepropetrovsk Tube Works increased its steel pipe production by 38% YoY to 74,600 tons. (SteelOrbis)

ISD steelmaking subsidiaries issue output results for January-April

In the January to April period the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass (ISD) produced a total of 2.244 million tons of pig iron, up by 8% compared to the same period of last year.
In addition, the subsidiaries' crude steel output in the given period increased by 2% compared to the corresponding period of 2010, rising to 2.345 million tons. In the first 4 months of 2011 ISD companies registered a 7% increase in their finished steel production year on year to 2.279 million tons, while their overall sinter output went up by 4% YoY to 3.287 million tons. (SteelOrbis)

IUD steelmaking subsidiaries issue January production results

It is reported that Alchevsk Iron and Steel Works and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD), the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass, have issued their preliminary production results for January.

IUD subsidiaries issue 11 months production results

It is reported that Alchevsk Iron and Steel Works and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD), the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass (IUD), have issued their preliminary production results for the first 11 months of the current year.

In January to November Alchevsk Iron and Steel Works saw its crude steel production decline by 21.8% YoY to 2.646 million tons, finished steel product output dropped by 21% YoY to 2.444 million tons, pig iron production fell by 22.6% to 2.338 million tons, while its agglomerate production declined by 6.5% YoY to 3.902 million tons.
In November Alchevsk Iron and Steel Works produced 214,000 tons of crude steel, 191,000 tons of finished steel products, 181,000 tons of pig iron and 305,000 tons of agglomerate.

During the first 11 months of the current year DMKD registered a 19.7% YoY decrease in its crude steel production to 2.514 million tonnes down by 21.7% YoY drop in its finished steel product output to 2.352 million tons, an 18% YoY fall in its pig iron production to 2.381 million tons and a 10.6% YoY decrease in its agglomerate output to 3.912 million tons.
In November DMKD produced 250,000 tons of crude steel, 229,000 tons of finished steel products, 228,000 tons of pig iron and 366,000 tons of agglomerate. (SteelOrbis)

Much more about metal of Ukraine, Russia and other CIS-countries at http://metalukraine2010.blogspot.com/

IUD subsidiaries issue January to August production results

It is reported that Alchevsk Iron and Steel Works and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD), the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass, have issued their preliminary production results for the first eight months of the current year.
In January to August Alchevsk Iron and Steel Works saw its crude steel production decline by 19.4% YoY to 1.985 million tons, finished steel products output drop by 18.5% YoY to 1.829 million tons, pig iron production fall by 20.8% YoY to 1.769 million tons while its agglomerate production declined by one percent to 2.938 million tons.
In August Alchevsk Iron and Steel Works produced 223,000 tons of crude steel, up by 62.8%, 178,000 tons of finished steel products, up by 43.5%, 202,000 tons of pig iron, up by 68.3%, and 402,000 tons of agglomerate, up by 47.2%.
During the first eight months of 2010, DMKD registered an approximate 24% YoY decrease in its crude steel production to 1.771 million tons, a 25.2% YoY drop in its finished steel product output to 1.672 million tons, a 21.8% YoY fall in its pig iron production to 1.698 million tons, and around a 13% YoY decrease in its agglomerate output to 2.797 million tons.
In August DMKD produced 186,000 tonnes of crude steel up by 38.8% MoM, 154,000 tonnes of finished steel products up by 2% MoM, 168,000 tonnes of pig iron up by 40% MoM and 312,000 tonnes of agglomerate up by 21% MoM.
In August both Alchevsk and DMKD managed to significantly increase their capacity utilization levels to 42% and 55% respectively from 27% and 39% in July mainly due to their agreement with the Ukrainian mining and steel producing company Metinvest Group on the partial resumption of iron ore supplies.
Analysts from Astrum Investment Management noted that "Given Metinvest's plans to further boost supplies to these companies in September these companies should boost output by 10% to 15% in the current month.". (SteelOrbis)
Much more about metal of Ukraine, Russia and other CIS-countries at http://metalukraine2010.blogspot.com/

ISD in debt restructures talks

Industrial Union of Donbass (ISD), one of Ukraine largest steel groups, is in talks with creditors to restructure its debts.
ISD said in a statement that "ISD is holding successful talks with international banks and financial institutions regarding the restructuring of financial debt which is quite common for industrial companies during these hard times."
ISD declined to provide any debt figures. According to bond market information company Cbonds.info, it has a $150 million Eurobond due in September.
According to Thomson Reuters Loan Pricing Corp data, ISD also has a $300 million, three year unsecured loan maturing later this year and a $350 million loan provided by the IFC and commercial banks that matures in 2013 and 2016.
Proceeds of the IFC deal were used to fund the modernization of the borrower’s two major steelworks, Alchevsk Iron and Steel Works and Dneprovsky Iron and Steel Works.
The company was among the world 30 biggest steel producers in 2008 with annual output of more than 10 million tons, but Ukraine steel industry, which generates most of the country export revenues, was hit hard by the global economic downturn. (Reuters)
Much more about metal of Ukraine, Russia and other CIS-countries at http://metalukraine2010.blogspot.com/ 

IUD sharply decreased output in late May

It is reported that the steelmaking subsidiaries of the Ukrainian steel producer Industrial Union of Donbass, namely Alchevsk Iron and Steel Works and Dneprovsky Iron and Steel Works named after F. Dzerzhinsky (DMKD), have sharply decreased their steel outputs in late May to early June.
According to Ukrainian association of metal producers Metallurgprom, when its operations are stable Alchevsk average daily pig iron output amounts to 11,000 tons to 12,000 tons. In March up to the first half of May this year the plant was producing about 11,000 tons of pig iron per day, but at the end of May it started to gradually decrease its output, which now stands at the level of about 2,000 tons of pig iron per day. In the third week of May the plant was forced to halt two of its blast furnaces. Meanwhile, DMKD has also decreased its average daily pig iron output from 8,000 tons to 9,000 tons in previous months to 3,000 tons to 5,000 tons.
M.r Alexander Pilipenko, vice president of IUD, said the output decrease was most likely due to lack of orders. He said that "When in mid-April plans to raise the iron ore prices were heard, many traders began to buy cheap steel for fear that steel prices would increase significantly. Thus, they overstocked their warehouses and from May up to now demand for steel products has been low."
On the other hand, the plants say that the main reason for production cuts is the lack of iron ore. However, Ukrainian Ministry of Industrial Policy stated that currently the country does not face an iron ore shortage and that the main problem is in price agreements for the supply of iron ore. Meanwhile, according to some market sources, the cause of this situation could also be the lack of working capital, which is connected with the country's VAT refund issue. (Interfax-Ukraine)

IUD plants certified according to the international standards

Summarizing the results of the first three months of 2010 all Ukrainian IUD enterprises, namely Alchevsk Coking Plant, Dneprovsky Iron and Steel Works and Alchevsk Iron and Steel Works have passed the certification according to two international standards: ISO 14000 and OHSAS 18000.
The third IUD works to have passed the certification is Alchevsk Iron and Steel Works which is an apparent leader among Ukrainian enterprises in the field of the modernization of production.
International standards ISO 14000 and OHSAS are aimed at meeting obligatory requirements by an enterprise as well as working out efficient activities directed at saving natural resources and permanent reduction of harmful impacts on the environment and personnel of an enterprise. (SteelGuru)

IUD ink a contract to supply steel to Middle East

IUD Corporation and Litat Group Company have signed a contract to supply steel to the Middle East countries in the amount of 4.8 million tons within 2010.
The agreement provides for the preliminary financing of production on the orders of Litat Group Company.
IUD Corporation has been collaborating with Litat Group in the field of steel sales of AMK and DMKD products for more than 8 years. The annual volumes of sales resulting from this collaboration made about 4 million tons. (SteelGuru)

Carbofer owner Mr. Katunin buys 50+% stake in IUD

Interfax Ukraine reported that Mr. Alexander Katunin, the owner of Swiss metal trader Carbofer Group and the former co-owner of Russia's Evraz Group, together with a group of financial investors and with the participation of Russia's Vnesheconombank, had purchased a controlling interest in Donetsk-based Industrial Union of Donbas (IUD) Corporation.

IUD in a press release said that the new partners had helped the company to strengthen its position on the global market.
The press release said “The IUD and a group of financial investors and investors from the mining and metal industry state that they have reached an agreement to combine efforts to develop the competitiveness of the metallurgical assets of the Ukrainian corporation on the global market.”
It said “According to their agreements, the new partners led by Mr. Alexander Katunin, owner of the international steel and iron products trader Carbofer Group SA as well as logistic and production companies, have bought a 50% plus two stocks package in the IUD. 49.99% share still belongs to Mr. Serhiy Taruta and Mr. Oleh Mkrtchan.”
IUD, founded in 1995, is an integrated holding company that owns or manages stakes in mining and metals enterprises. The group's core assets are the Alchevsk Iron & Steel Works (AMK), Alchevsk Coke-Chemical Plant and Dzerzhynsk Iron & Steel Works (DMK) in Ukraine, as well as Dunaferr in Hungary and ISD-Huta Czestochowa in Poland.
Carbofer General Trading SA is a private company established in Luxembourg in 2004. The company trades steel, coal, pig iron, iron ore and scrap. In 2007, Carbofer General Trading purchased Evraz Metall. The company's sales volumes amounted to 9.7 million tons, bringing the company $ 3 million of revenues in 2008.
Investment company Troika Dialog acted as financial adviser in the deal.  (Kyivpost)

IUD sees recovery in Ukrainian steel sector

Ukrainian steel giant Industrial Union of Donbass feels that the regulation about increasing the competitiveness of mining and steel industry in Ukraine will finally lead to recovery.

Mr Sergey Taruta chairman of the board of Directors of IUD said “Currently there are some improvements but we can’t speak about changing the situation in the whole mining and steel branch. Today metallurgists do not have problems with sales, there’s a problem of cost. It doesn’t allow the metallurgists to enter the market with attractive prices.”

Mr Taruta added that “Enterprises have the shortage of circulating assets since they have to make advance payments for raw materials, and the consumers pay for the factory shipments by installments. At the same time we can’t expect that the government will give us money because it’s a utopia.”

Mr Taruta added “But there exist other mechanisms. It’s the law which we called the regulation about the increase of the competitiveness of the enterprises. We called it in such a way not to be sanctioned for protectionism by other countries. The mechanism provides for granting the state guarantees for taking out loans for the modernization of the mills of mining and steel branch. There’s one more mechanism which involves advance payments for the reduction of emissions within the framework of Kyoto protocol. Both mechanisms are quite real variants.” (SteelGuru)