Metals and Mining

According to the Yieh Corporation, global iron ore market leaders – namely BHP Billiton, Rio Tinto and Vale – have increased the iron ore price for China’s metallurgical companies by 40% to USD 80 per tonne for FY2010. At the same time, China’s consumers noted that this is only a preliminary agreement and that negotiations will continue.

According to the Managing Director of Arcelor Mittal Kryvyi Rih, Jean Rue, the Company plans to invest up to USD 200 mln in the modernization of production capacities and the fulfillment of its investment obligations.

According to the World Steel Association, in January, global steel production grew by 25.5% MoM to reach 108.9 mln tonnes in January. Most countries in the top ten steel producers experienced a monthly increase in steel output, with the exception of Ukraine, Russia, Japan and Turkey. Despite the MoM decrease in steel output, Ukraine managed to boost steel production by 28.4% YoY.

According to Metal-courier, Zaporizhstal, one of the largest Ukraine’s steelmakers, began importing coke from Russia. The steelmaker signed an agreement with Russian “Coke” (Kemerovo), according to which the Company should supply 10 thsd tonnes of coke to Zaporizhstal in February. Zaporizhstal representatives explained this decision as a result of the coke deficiency in Ukraine and the low coke quality of domestically-produced coke.

According to the State Statistics Committee of Ukraine, in 2009, Ukraine’s coke imports contracted by 80% to reach 0.25 mln tonnes. At the same time, coke exports decreased by 8.5% to 0.92 mln tonnes.

Illich Stal, which controls the Mariupol Illich ISW, increased its share in Komsomolsk Ore to 99.66%, or 1.136 bln shares, after Mariupol Illich ISW transferred its share of 33.14% to Illich Stal.

According to information disclosed by Zaporizhstal [ZPST UZ], the Company ended FY2009 with a net loss of UAH 290.5 mln, compared with UAH 47.7 mln in net income in 2008.

According to a press service by Mariupol Illich ISW [MMKI UZ], the Company ended FY2009 in the red, reporting a net loss of UAH 255 mln, compared with UAH 1.36 bln in net income in 2008. Its total assets, equity, current liabilities and long term financial investments remained almost flat. At the same time, retained earnings have diminished from UAH 1.46 bln to UAH 97.4 mln, while accounts receivables contracted by 11.9%, and cash by 22.5%.

According to the CEO of Mariupol Illich ISW, Vladimir Boyko, the Company may halt production in 2-3 months’ time if the government fails to refund its outstanding VAT. Currently this sum is is estimated at about UAH 800 mln.

According to the EVRAZ press service, the Petrovskyi ISW is launching the production of a new kind of rebar (U-iron) #14. After it has achieved the certification of this new product, the Company plans to sell it on the European market.