Ukrainian Ferroalloy Production Doubles

Ukrainian Ferroalloy Production Doubles

Ukraine doubled its ferroalloy output in the first seven months of this year, according to figures released by Ukrainian Ferroalloy Producers' Association.

Output for the period grew to 871,500 tonnes. Silicon manganese production grew 83.1 per cent to 573,700 tonnes, ferromanganese rose 260 per cent to 173,000 tonnes, ferrosilicon 45 output rose 71.7 per cent to 116,400 tonnes and manganese metal production was up 7.7 per cent to 8,400 tonnes.

The country’s largest producer, Nikopol Ferroalloy Works (NFW), raised silicon manganese production 65.8 per cent year-on-year in the seven months to 421,000 tonnes while ferromanganese production was up 460 per cent to 132,500 tonnes. Overall ferroalloy output at Nikopol rose 140 per cent year-on-year to 554,000 tonnes.

Zaporizhia Ferroalloy Works (ZFW) saw silicon manganese production more than double to 103,100 tonnes with output of ferrosilicon 45 rising 120 per cent to 33,800 tonnes. ZFW’s ferromanganese was up 64.4 per cent to 40,500 tonnes and manganese metal production rose 7.7 per cent to 8,400 tonnes. Total ferroalloy output at ZFW doubled to 185,800 tonnes.

The Stakhanov Ferroalloy Plant (SZF), doubled its total production to 131,700 tonnes, while the country's two manganese concentrate producers, the Ordzhonikidze and Marhanets mining and beneficiation plants, produced 846,500 tonnes of concentrate between them in January-July - more than double the production in the same period of last year.

Ukraine Halts Electricity Exports To 3 EU Nations

Ukraine's Energy Ministry says the nation has cut off electricity exports to three European Union nations amidst reports of a coal shortage. Fuel and Energy Ministry spokesman Fent Di said the shutoff occured because no Ukrainian firms put in bids to sell the electricity amid a coal shortage in Ukraine.

Hungary, Romania and Slovakia will all have their electricity supplies cut as Ukraine’s newly elected President Viktor Yanukovych travelled to Brussels Monday on his first official foreign visit. He was expected to discuss energy security and other issues with EU leaders.

Firms responsible for about half of the ceased electricity are controlled by the government of Prime Minister Yulia Tymoshenko, who last month lost the presidential election to Mr Yanukovych.

Ukraine To Investigate Ferroalloy Imports

The Ukrainian Interdepartmental Commission on International Trade is to investigate import the import of some ferroalloy products into Ukraine. Ferromanganese with a carbon content of more than two percent (excluding ferromanganese granules of more than 5 mm and with manganese content of more than 65 percent) and ferrosilicomanganese will be subject to the investigation regardless of origin.

The investigation has been requested by the Association of Ukrainian Ferroalloy Producers (UkrFA) and a number of ferroalloy producers including the Nikopol Ferroalloy Plant (NZF), the Zaporizhia Ferroalloy Plant and the Stakhanov Ferroalloy Plant (SFP).

In a statement released by the complainants Ukraine’s ferroalloy output decreased by 59 per cent in Q3 2009 compared to Q3 2008, however ferroalloy imports increased by 219 percent, while prices went down by 38 percent.

In 2009, Ukraine’s ferroalloy output decreased by 25.2 per cent against 2008 to 1.036 million mt, however ferroalloy imports increased by 5.4 times year on year to 103,350 mt. This included 58,940 mt of Ferrosilicomanganese imports were 58.940mt, up 4.3 times compared to 2008, ferromanganese imports were 35,600 mt - up 11.6 times - and ferrosilicon imports were 8,610 mt of ferrosilicon - up 4.1 times. Ukraine imports ferroalloys mainly from Russia, Kazakhstan, Georgia and China.

Ukraine Ferroalloy Production Down By A Quarter In 2009

According to the Association of Ukrainian Ferroalloy Producers (UkrFA), in 2009 Ukraine registered a 25.2 percent decrease year on year in its ferroalloys production to 1.036 million mt.

Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.

SourcE: Stele Orbis

Ukraine Coal Production Falls 7 Per Cent In 2009

Ukraine reduced coal production approximately 7% in 2009 to 72.22 million tonnes, the Coal Ministry told Interfax. Coking coal production fell 4.3% to just under 25.5 million tonnes, and steam coal fell 8.4% to 46.725 million tonnes. Coal production was still 14.1% above the target set by the Coal Ministry.

State-owned coal mines accountable to the Coal Ministry reduced production 15.3% in 2009 to 38.44 million tonnes, including 9.134 million tonnes of coking coal, down 10.9%, and 29.306 million tonnes of steam coal, down 16.6%.

Overall coal production in December alone rose 1.1% year-on-year to just under 6.2 million tonnes, including 1.87 million tonnes of coking coal, up 5.2%, and 4.331 million tonnes of steam coal, down 0.6% year-on-year.

Coal production in Ukraine rose 3% in 2008 compared with 2007 to 77.673 million tonnes, including 26.642 million tonnes of coking coal, down 6.2%, but 51.031 million tonnes of steam coal, up 8.5%.

Data analysis at the Kyiv Post

Output Down At Zaporozhye Ferroalloys Plant

During 11 months of 2009, Zaporozhye Ferroalloys Plant in Ukraine reduced its silicomanganese output by 54.6% to 102,400 tonnes, ferrosilicon (in recalculation to 45%) by 40.9% to 34,300 tonnes, ferromanganese by 46% to 47,500 tonnes. Production of metallic manganese increased by 58.1% to 13,600 tonnes.

In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.

The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.

Source: Steel Guru

Iran Considers Buying Ukrainian Coking Coal

The Ministry of Industrial Policy of Ukraine has announced following the meeting of Mr Serhiy Hryschenko Ukraine's deputy minister for industrial policy with Mr Khalil Rahmani MD of FITCO that Iran based Fakoor International Tehran Engineering Company is examining the possibility of purchasing Ukrainian coking coal.

The Ukrainian side noted that cooperation between the countries in this area is possible if FITCO revises its demands in relation to coking coal characteristics, bringing them closer to Ukrainian standards.

In January to November this year, Ukraine registered 5.9% decrease YoY in its coking coal output to 23.4 million tonne. In 2008, Ukraine's output of coking coal decreased by 6.2% YoY to 26.642 million tonne.

Source: Steel Guru

Steep Fall In Ukrainian Ferroally Production

According to the Association of Ukrainian Ferroalloy Producers, in January to October this year Ukraine registered a decreased of 41.5% YoY in ferroalloys production to 810,700 tonnes.

During the first ten months of 2009, Ukraine silicomanganese output decreased by 33.8%YoY to 582,000 tonnes, ferromanganese production went down by 72.6% YoY to 98,500 tonnes, ferrosilicon output dropped by 15.9% YoY to 117,800 tonnes while metallic manganese production increased by 44.2% YoY to 12,400 tonnes.

According to the preliminary data, in January to October this year the largest Ukrainian ferroalloy producer Nikopol Ferroalloy Plant reduced its ferroalloy output by 36%YoY to 520,700 tonnes including 463,400 tonnes of silicomanganese down by 16.6% YoY and 57,300 tonnes of ferromanganese down by 77.7% YoY. Since the beginning of the year, the plant has not produced any other ferroalloys.

Source: Steel Guru

Evraz Buys 90% Stake In Vanadium-Tula

Interfax reportsthat the Russian Federal Antimonopoly Service has allowed the Evraz Group's Nizhny Tagil Iron & Steel Works to acquire 90.84% in OJSC Vanadium-Tula setting a number of requirements.

The Ukraine Antimonopoly Committee in June this year allowed the Cyprus based Evraz Group member Mastercroft Limited to acquire over 50% in Vanadium-Tula.

Mr Alexei Agureyev vice president for PR of Evraz said "The deal has not yet been done. LLC Sibmetinvest and NTMK filed the request with the FAS to acquire 90.84% of Vanadium-Tula in September 2009. The FAS granted the request on November 2nd. The law allocates one year from the date permission has been received to complete the transaction."

He said the regulator's approval was needed because Vanadium-Tula was one of the biggest ferrovanadium and Nitrovan vanadium producers.

Vanadium-Tula is one of world's leading producers of vanadium compounds. Siberian Mining and Metallurgical Company bought the plant from OJSC Koks a member of the Industrial metallurgical Holding, at the end of 2007. The plant used slag supplied by Evraz steel mills as feedstock.

Sources: Steel Guru, Interfax

China Iron Ore Imports From Australia Up 40 Per Cent

According to the latest statistics released by Chinese Customs the top five iron ore exporters to China in January to September were Australia, Brazil, India, South Africa and Ukraine.

Among them, the imports from Australian mines totaled 197 million tonnes up by 39.5% on a year ago with the CIF price averaging at USD 75.4 per tonne.

In January to September, China imported 102 million tonnes of iron ore from Brazil, 31.4% more than last year's 77.61 million tonnes. The accumulated import value was USD 9.1 billion with the average CIF price USD 89.2 per tonne.

Imports from India amounted to 82.68 million tonnes in January to September, 31% more than last year's 73.1 million tonnes and valued USD 5.54 billion in total at an average price of USD 67 per tonne.

January to September imports from South Africa surged 144%YoY to 26.53 million tonnes, USD 2.2 billion by value and the CIF price averaging USD 82.9 per tonne. And Ukraine exported 11.4 million tonnes of iron ore to China in the first nine months up by 91.3%YoY with a total value of USD 990 million and an average CIF price of USD 86.8 per tonne.

Source: Steel Guru

ArcelorMittal Delays Ukraine Project Decision

ArcelorMittal will leave it until after the elections to decide whether to commit itself to the project to build the Krivy Rih Oxidized Ore Mining Complex (KGOKOR), the company's chief, Lakshmi Mittal, told Interfax on the sidelines of the World Steel Association conference in Beijing.

"I think very much will depend on the new leadership that will be elected in January and on its privatization policy, which is not very clear. So we'll be leaving our decision until after the elections, and then we'll see," Mittal said when asked whether his company planned to revive its joint project with Ukraine's Industrial Union of Donbas to complete the Krivy Rih mine.

The Kryvy Rih mine, in the vicinity of the ArcelorMittal Kriviy Rih steel works, will cost an estimated $800 million to finish building.

Source: Kyiv Post

Ferrexpo Iron Ore Pellets Falls Slightly

Ukranian iron ore producer Ferrexpo Plc said pellet output fell 2.0 percent in August from the year-earlier period and that production remained at full capacity.

Total pellet production from its own raw materials declined to 746,900 tonnes from 761,800 tonnes in August 2008, the London-listed company said on Tuesday on its website.

It also processed 15,800 tonnes of pellets from purchased concentrate, bringing overall pellet output to 762,700 tonnes, down 9.3 percent.

Overall pellet production for the year to date fell 9.6 percent to 5.66 million tonnes.

The company released interim results on Aug. 5, saying it expects to be more profitable in the second half after trading reached a low point in the six months to end June.

Source: Forbes

ArcelorMittal In Ukrainian Ferroalloy Dispute

The Ukrainian steelmaker ArcelorMittal Kriviy Rih announced that its refusal to prolong a contract for ferroalloy deliveries in the context of its reduced production rates has led its main ferroalloys supplier Zaporozhye Ferro Alloys Plant to take an action for the legal collection of about UAH 205.59 million from the company for pre payment for future ferroalloy deliveries as ZZF insists on prolongation of the contractual partnership.

On July 15th 2009, the court of first instance in the Dnepropetrovsk region satisfied the stated claims in relation to payment of these funds in favor of ZZF.

However, alleging that judgment was accepted with gross violation of Ukrainian laws and improper use of material and legal practice of Ukraine, ArcelorMittal Kriviy Rih has appealed to the Dnepropetrovsk economic court relating to the right of ZZF to continue deliveries to the enterprise in conditions of validity of force majeure circumstances, ie the global economic crisis.

ArcelorMittal Kriviy Rih halted purchases of ferroalloys from ZZF in the last quarter of 2008 citing the significant reduction of its production rates.

Source: Steel Guru

Iran Offers Anthracite To Ukrainian And Indian Buyers

Iran is offering anthracite coal to Ukrainian and Indian buyers for the first time due to a fall in demand domestically, traders said.

Until now Iran has not exported its high energy content, low volatility anthracite but used it internally in steel production, they said. “We have been offered Iranian material. It’s anthracite with a high calorific value but it has met coal properties so could be used for steel. But for India it doesn’t make economic sense,” one Indian trader said.

Ukrainian steel mills are more keen on the Iranian material because the Russian coking coal on which they partly depend has risen sharply in price and is in tight supply, due to the recovery in Russia’s own steel output.

Source: The Peninsula, Qatar

Ferrexpo's Profits Plunge 80 Per Cent

Ferrexpo Plc, the producer of iron ore in Ukraine, said first-half profit slumped 80 percent after demand for the steelmaking ingredient weakened.

Net income slipped to $28.5 million, or 4.87 cents a share, from $141.4 million, or 23.14 cents, a year earlier, Baar, Switzerland-based Ferrexpo said in a statement today. Sales declined 42 percent to $301.8 million. The declaration of its interim dividend will be deferred until October.

Trading reached a “low point” in the first half, Ferrexpo said in the statement. “We should be trading more profitably in the second half.”

There are signs of “normalization” in the iron-ore trade and strengthening regional consumption, while Chinese demand remains “robust,” the company said. Iron ore for immediate delivery to China, the biggest buyer, climbed to the highest in nine months last week, trading above the annual benchmark price agreed between Rio Tinto Group and mills in Japan, South Korea and Taiwan.

Source: Bloomberg

Iron Ore Production Up At Ferrexpo

Iron ore production increased slightly in the second quarter at Ferrexpo, the Swiss-based mining group whose assets are based in Ukraine.

However, the amount of iron ore pellets created from this ore – and destined for use by steelmakers – fell during the period, as spot sales to Asian markets ate into profitability.


“Ferrexpo continued to trade profitably in the second quarter of 2009,” said Kostyantin Zhevago, chief executive.

“Freight rates from the Black Sea to China did put pressure on our average achieved...prices during the period, but this is likely to prove a temporary phenomenon. The outlook for iron ore is improving for the next quarter, particularly in our traditional markets [ones closer to eastern Europe], which will reduce our reliance on the Asian seaborne spot market to some degree.”

In the second quarter of 2009, Ferrexpo produced 7.5m tonnes of iron ore, 3.8 per cent more than the 7.2m produced in the second quarter of 2008, with the company operating at full mining capacity throughout the period. However, the total number of pellets produced from this ore fell 1.4 per cent to 2.2m tonnes.

For the first half of 2009, sales volumes outpaced production.

There was a strong divergence in demand for the two different grades of iron ore pellets. Production of higher quality pellets that have a greater iron content increased 6 per cent compared with the same period last year to 1m tonnes, while production of pellets with a lower iron ore content dropped 7 per cent to 1.2m tonnes.

Ferrexpo saw a jump – albeit from a very low base – in so-called ‘toll’ production, where miners produce iron ore pellets from ore mined by third party companies. Toll production of pellets grew by 56 per cent in the period to 15,000 tonnes.

Ferrexpo is currently facing a wave of investor unrest. In May, dissident shareholders who believe that controls on management are insufficient tried to prevent the group from a share buyback. Then last month, Mr Zhevago suggested that shareholders who dislike his management style should simply sell their stakes in the group.

Source: Financial Times

Ukrainian Ferroally Production Down 62% Year-On-Year

According to data issued for H1 of 2009, Ukraine registered a decrease to 337,100 tonne in its ferroalloys production ayear-on-year fall of 62.8% .

In January to June 2009, Ukraine’s silicomanganese output decreased by 58% YoY to 240,400 tonnes, its ferromanganese production went down by 85% YoY to 37,200 tonnes, its ferrosilicon output dropped by 34.4% YoY to 53,300 tonnes while its metallic manganese production increased by 72.2% YoY to 6,200 tonnes all compared to the same period of last year.

In June 2009, Ukraine increased its ferroalloys output by 26.2% to 84,900 tonnes compared to May 2009.

Source: Steel Guru

Krasnodonugol Plans USD87 Million Coal Investment

Krasnodonugol, the coking coal subsidiary of Ukraine’s Metinvest Holding, plans to invest about UAH 670 million (USD87 million) in 2009 in the modernisation of existing production capacities and in the improvement of working safety conditions.

From January to May 2009, Krasnodonugol has invested more than UAH 200 million (USD26 million) in the upgrading of its production, of which UAH 136 million (USD18 million) has been directed towards the preparation and equipping of its four new longwall coal faces, while UAH 18 million (USD 2 million) has been spent on the improvement of working safety conditions.

Source: Steel Guru

Ukrainian Iron Ore Exports Down 11% In First Five Months Of 2009

According to preliminary data issued for the first five months of 2009, Ukrainian steelmakers decreased their imports of iron ore by 11.4% to 1.623 million tonne while Ukrainian mining companies reduced their iron ore exports by 6.9% YoY to 9.124 million tonnes compared to the same period last year.

In January to May 2009, Ukraine imported 1.238 million tonnes of iron ore concentrate up by 71.7%, 250,500 tonne of sintered ore down by 63.1% and 113,300 tonne of pellets down by 73.8% all compared to January to May 2008. In addition, Ukrainian steelmakers imported 21,800 tonne of agglomerate which was not imported during the same period last year.

On the other hand, during the first five months of 2009, Ukraine’s exports of iron ore concentrate increased by 42.3% to 4.046 million tonne, its exports of pellets went up by 0.2% to 3.696 million tonne while its exports of sintered ore decreased by 57% to 1.382 million tonne.

According to the Ukrainian Association of Ore-dressing Enterprises, due to the increase in iron ore imports from Russia the volumes of domestic iron ore sold to the local market have decreased. As a result of the decrease in demand, Ukrainian mining companies are finding it difficult to sell their products and as a result the reserves in their stocks are increasing.

SourceL Steel Guru

Ferrexpo Trading Profitably At Full Capacity

Ukrainian iron ore producer Ferrexpo Plc is selling its entire output and trading profitably, although spot prices remain under pressure, the London-listed firm said on Tuesday.

Sales volumes in April were 898,000 tonnes, more than its production in the month, the company said in a trading statement ahead of its annual general meeting.

"Ferrexpo continues to perform well in extremely tough trading conditions," chairman Michael Abrahams said. "Cash costs of production continue to benefit from the weaker Ukrainian hyrvnia, and Ferrexpo continues to trade profitably."

The main reason for weak spot iron ore prices into China on an FOB basis were high freight rates from the Black Sea into China. But reliance of Ferrexpo on seaborne sales into China has been lessened recently since some demand has returned in its home market.

"The resumption of sales to certain European and Ukrainian customers indicates the start of a slow normalisation of sales conditions in these markets," the statement said.

"We expect pricing to remain under pressure in the current quarter and although there is a likelihood of improvements in the market, it is difficult to predict with certainty the outcome in the second half of the year."

Source: Reuters