Daily monitor

Ukraine’s steelmakers plan to increase steel output in October by 11.3% MoM to three mln tonnes, compared to expected production in September, Interfax reported.

The Ministry of Agrarian Policy of Ukraine decreased its crop harvest projections by 4%, to 38.6 mln tonnes of grain and leguminous crops, mainly due to lower expectations for the corn harvest results of 10.6 mln tonnes, with average yield of 3.8 tonnes per ha. The export forecast for MY10-11 was also decreased by 18% from 15 to 12.7 mln tonnes.

International rating agency Fitch confirmed its long-term rating of Ukraine at the “B” level with a forecast of “stable.”

Yesterday, Ukrros [UROS UK, U/R] announced its production plans for the current year. The Company plans to process about 1.27 mln tonnes of sugar beet (35% of which is produced by Ukrros) and produce about 166.5 thsd tonnes of sugar.

According to Interfax, the Evraz group is going to merge Petrovskyi ISW [DMZP UK] and Dneprokoke [DNKOK UK] into one company for an increase in the statutory funds of DMZP of 24.4% to UAH 575 mln.

Zaporizhya Automobile Plant [ZAZA UZ] announced its plans to start production of a new C class car named the ZAZ Forza in January 2011. The first series of 1.5 liter hatchbacks and sedans is to be produced during November. The price of a new car will start at USD 10.6 thsd. Forza is based on the platform of the Chery A13 and is to be produced in cooperation with Chery Co.

Ukrnafta’s oil and gas condensate production fell by 13.5% in 8M2010, to 1.7 mln t, while its natural gas output dropped 17.7%, to 1.7 bln cm. At the same time, Ukraine’s total oil and gas condensate production declined 11.3% to 2.4 mln t, and natural gas output fell 6.1% to 13.3 bln cm.

In August Ukraine’s electricity consumption rose 2.1% MoM to 14.4 bln kWh, bringing 8M consumption to 119.8 bln kWh (+10.2% YoY).

According to the Prime Minister of Ukraine, Nikolay Azarov, the Government has no plans to impose restrictions on grain exports. Earlier, the Government had indicated an intention to set quotas for export at a level of 1 mln tonnes for barley, 1.5 mln tonnes for wheat, and 0.01 mln tonnes for rye.

During January-August 2010, Bogdan Motors [LUAZ UZ] increased its production of cars by 3% YoY to 11,328 units. The MoM production increase in August accounted for 26%. The company downgraded its production predictions from 22,000 to 20,000 cars.