British Ferrexpo plc, which controls in Ukraine, in particular, Poltava and Yeristovo mining and processing plants, reduced production of pellets by 14% in January-June 2022 compared to the same period last year, to 4.797 million tonnes.
According to the company’s press release on Thursday, pellet production in the second quarter of this year decreased by 23% compared to the first quarter, and by 27% by April-June 2021, to 2.085 million tonnes.
In the first half of 2022, production of premium pellets with an iron content of 65% amounted to 4.707 million tonnes (a decrease of 13%), including in the second quarter – 1.994 million tonnes (a decrease of 26% compared to the previous quarter and 28% compared to the same period last of the year). Output of direct reduced iron pellets (DRI, 67% of iron) in January-June amounted to 90,000 tonnes (an increase of 33% compared to six months of 2021), which were produced in the second quarter of this year, while they were not produced in the first one.
Pellets with an iron content of 62% were not produced in January-June of the current year.
At the same time, total production of marketable products (pellets and iron ore concentrate) over six months of 2022 decreased by 16%, to 4.816 million tonnes, in the second quarter compared to the first one – by 22%, and versus April-June 2021 – by 28%, to 2.103 million tonnes. In particular, output of commercial concentrate over six months of 2022 decreased by 88%, to 19,000 tonnes, the entire volume was produced in the second quarter, while there was no output in January-March.
The company explains the decline in pellet production by the ongoing war of the Russian Federation in Ukraine and the associated logistical restrictions. The Group continues to operate one to three of its pelletizing lines, reflecting the availability of logistics in Ukraine.
Sales in the first half of 2022 were 4.4 million tonnes, a decrease of 21% year-on-year and reflecting logistical constraints. At the same time, the group is negotiating with a number of logistics providers to resume access to maritime markets through neighboring countries.
Jim North, Chief Executive Officer of Ferrexpo, noted in his comment that the company continues to work and adapt its business in Ukraine as new risks emerge.
“We also continue to be impressed by the remarkable resilience of the people of Ukraine, despite the continual bombardment over the last four months. Our production result in the second quarter of 2022 reflects the determination of our people, our suppliers and our customers… In terms of logistics availability, which remains the largest constraint on our business at the present time, we are advancing efforts to increase seaborne exports and have made initial deliveries to customers,” he said.
Ferrexpo is an iron ore company with assets in Ukraine.
The Tekhkomplekt special equipment plant, which has production facilities in the Kyiv and Poltava regions, has begun production of grain trucks with a large load under the AGRiLine marking, the company reports on its website.
“The first model of a grain carrier, called MEGA Koshmanivets, was released in partnership with our dealer, Eridon Tech, and the entire line of grain carriers will be produced under the AGRiLine label and will be mounted on truck chassis, semi-trailers and trailers,” the message says.
The body of the grain truck MEGA Koshmanivets has unloading back and on the right side, the volume of loading with agricultural crops is designed for 35 cubic meters. m.
A Chinese truck with a gross weight of 33.5 tons and a permissible load capacity of 24.5 tons is used as the base chassis, but, as noted in the message, a grain carrier with such a body volume and based on any other chassis with a gross weight of 32 tons or more is recommended to load up to 20 tons.
Among the advantages of the grain truck body, Tekhkomplekt notes the use of Strenx 700 high-strength steel for the manufacture of load-bearing elements of the platform and sides, Hyva hydraulics, imported factory fittings for tipping the body, and other structural advantages.
The production of AGRiLine grain carriers has passed the necessary tests and is certified by Ukrainian notification authorities.
The plant is currently forming a portfolio of orders for 2023.
Plant “Tekhkomplekt” is an enterprise with a full cycle of production of special equipment and superstructures on the chassis of cars of various brands. The resources of the enterprise allow to repair and re-equip up to 100 trucks and commercial vehicles monthly. For 24 years of operation, the plant has shipped more than 35 thousand units to customers. special equipment.
Earlier it was reported that in connection with the abandonment of the Belarusian (MAZ) and Russian (GAZ) manufacturers, which were previously actively used as new base chassis, Tekhkomplekt is expanding their model range, including through Asian manufacturers.
In January-June 2022, Zaporizhstal reduced output of rolled products by 46.6% compared to the same period last year, to 839,400 tonnes.
According to the enterprise on Friday, steel production decreased by 53.6% over six months of 2022, to 922,300 tonnes, and cast iron – by 48.1%, to 1.134 million tonnes.
In June of this year, the steel plant produced 146,900 tonnes of cast iron (43.1% compared to June 2021), 69,600 tonnes of steel (21.2%), 83,000 tonnes of rolled metal (50.2%).
“The decline in production compared to the same period last year is associated with a shortage of raw materials and logical problems caused by full-scale hostilities on the territory of Ukraine,” the press release explains.
At the same time, it is recalled that in connection with the aggravation of hostilities in the region since the beginning of March, Metinvest Group has transferred part of the equipment of Zaporizhstal to the hot conservation mode. At the end of March, Zaporizhstal partially resumed the work of the cold rolling shop for production and shipment of cold rolled coils to the European consumer. A month after the forced shutdown, the plant took the equipment out of conservation and partially resumed production. Since April 2022, the plant has been operating at an average of 50% of its capacity.
It is also reported that the Ukrainian defenders received another batch of ammunition and drones from Zaporizhstal of Metinvest Group. So, over the past two weeks, Zaporizhstal has handed over 2,100 body armor, 1,000 Kevlar helmets, as well as three reconnaissance drones to the servicemen of the National Guard of Ukraine and the territorial defense, who protect Zaporozhia and Dnipropetrovsk regions.
Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.
Production of paper and cardboard in Ukraine in January-May of this year decreased by 44.7% compared to the same period in 2021 – to 198.2 thousand tons, corrugated packaging – by 57%, to 126.9 million sq. m, according to the statistics of the association “UkrPapir”.
According to the statistics provided by the association to the Interfax-Ukraine agency, if in January of this year the production of paper and cardboard lagged behind last year by 4.6%, and corrugated boxes exceeded by 3.5%, then already in January-March, taking into account suspension of many enterprises with the beginning of a full-scale war of the Russian Federation against Ukraine, the production of these products decreased by 44% and 54%, respectively.
At the same time, some of the enterprises that stopped work at the beginning of the war never resumed it – in particular, due to the damage received in Rubizhne, the largest Ukrainian manufacturer of corrugated packaging, the Rubezhnoye Cardboard and Container Plant, stopped working (but its “daughter” in the Kyiv region – Trypilsky packing plant).
According to information in the disclosure system of the National Commission for Securities and the Stock Market (NKTSBFR), a remote extraordinary meeting of the plant’s shareholders is scheduled for July 4 with the issue of transferring the location of the Rubezhsky CPC legal entity to Kyiv.
According to UkrPapir, the damaged Rogan cardboard factory in the Kharkiv region has not resumed work (and does not plan to).
From the producers of corrugated packaging, Dunapak Tavria LLC, located in the Kherson region, also does not work (it produced boxes for Novaya Poshta – IF), and the Mena Pak company in the Chernihiv region, according to information available to the association, was able to resume work in May.
Zmievskaya paper mill (Kharkiv region) after three months of forced downtime in May reported the production of 1863 tons of recycled paper against 783 tons in May 2021.
At the same time, after the February suspension of production, the industry leader Kyiv Cardboard and Paper Mill has been operating since March (in terms of the production of corrugated packaging last year – the second after Rubezhansky CPC), Zhydachevsky Pulp and Paper (Lvov region) and Izmail Cardboard (Odessa region), Malinsky paper factory and “Papir-Mal” (Zhytomyr region)
In addition, according to statistics, the Lviv Cardboard and Paper Company did not stop working, maintaining the output of paper and cardboard in January-May at the level of last year, Poninkovskaya (Khmelnytsky region) and Lutsk (Volyn region) cardboard and paper factories, Kokhavinskaya paper mill (Lviv region).
As reported, in 2021, the production of paper and cardboard in Ukraine increased by 9.8% by 2020, to 898.2 thousand tons, corrugated boxes – by 5.9% to 752.9 million square meters.
Association “UkrPapir” unites 35 enterprises and companies, in particular 20 manufacturers of cardboard and paper products and printing enterprises, 11 distributors, two suppliers and suppliers of waste paper.
Cardboard and Paper Company LLC (Lviv), a major Ukrainian manufacturer of cardboard tubes and sanitary and hygienic products, increased production by 43.3% in January-May compared to the same period in 2021 – to UAH 403.7 million.
According to the statistics of the UkrPapir association provided to the Interfax-Ukraine agency, in natural terms, over this period, the company increased the production of paper – the basis for sanitary and hygienic products – by 16.1%, to 26.4 million tonnes, while increasing the production of toilet paper in rolls by 66.4% – to 1.8 million pieces.
At the same time, the output of cardboard products decreased by 4.8% – to 10.43 million tonnes.
According to the statistics of UkrPapir, the factory continued to work all months since the beginning of the year, reducing the production of paper and cardboard in March, but in April and May it already increased their production by 16.4% and 6.7%, respectively (compared to the same months last year).
Cardboard and Paper Company (until 2011 – Lvivkartonoplast) produces goods and semi-finished products from recycled cardboard (cardboard sheets, corners, tubes) and cellulose paper (toilet paper, towels, napkins of White Line and Papero trademarks).
In 2021, the company produced products worth UAH 782.7 million, which is 46.7% more than in 2020.
In January-May 2022, Ukraine produced 7.831 billion cubic meters of natural gas, which is 1.9% more than in the same period last year (7.687 billion cubic meters), according to the infographics of the Energy Suppliers Association (ESA).
According to it, the average daily gas production in May increased by 1% compared to April, but is still below the pre-war production of this year. In particular, in January this figure was 55.4 million cubic meters per day, in February – 54.5 million cubic meters, in March – 49.9 million cubic meters, in April – 49.6 million cubic meters, and in May – 50.1 million cubic meters.
At the same time, according to the association, in May a number of private companies managed to bring gas production to a double level.
According to the association, amid Russian military aggression, gas consumption in the country continues to decline, which amounted to 11.726 billion cubic meters in the first five months of this year. In particular, in January 2022 it amounted to 3.972 billion cubic meters (less by 4% compared to January 2021), February – 2.822 billion cubic meters (less by 34%), March – 2.735 billion cubic meters (less by 24%), April – 1.483 billion cubic meters (less by 33%), and May – 0.714 billion cubic meters (less by 46%).
Earlier, the Cabinet of Ministers instructed NJSC Naftogaz Ukrainy to increase gas reserves in underground storage facilities (UGS) to 19 billion cubic meters at the beginning of the heating season 2022-2023, while 10 billion cubic meters on June 1, 2022.
While maintaining consumption of about 25 million cubic meters per day and production of about 50 million cubic meters per day during June-September, Ukraine will be able to replenish stocks in storage facilities during this period by 3 billion cubic meters, while up to 6 billion cubic meters of gas will be needed to import. Some of these volumes can be brought into UGS facilities for their storage by foreign companies.
At the same time, the head of the Energy Committee of the Verkhovna Rada, Andriy Gerus, specified in early June that plans for 19 billion cubic meters in storage could be adjusted depending on a number of factors.
ESA, GAS, PRODUCTION
