Metals and Mining
August 15, 2008Flash Note: Avdiivka Coke: survival of the fittest
On August 15, Azovstal, the leading Metinvest Group steelmaker, announced its intentions to invest USD 1 bln into ecological improvements. We focus on one of the items of this program that were announced, a stepwise retirement of three coke batteries. We have long suspected that Metinvest will shut down these coke batteries eventually, which would likely secure a substantial, about 1.1-1.2 mln tpa, increase in output for Avdiivka Coke, the main Metinvest coke maker. Today’s news confirms our suspicions and strengthens the case for BUYing Avdiivka Coke.