Business news from Ukraine

UKRAINE RAISES IMPORTS OF COKING COAL IN JAN-MAY

Coke and chemical plants of Ukraine in January-May of this year imported 4 million tonnes of raw coking coal and coking coal concentrate, which is 4.2% more than in the same period last year.
According to an information note of the Ukrmetalurgprom association, the supply of Ukrainian coal mined during this period amounted to 1.64 million tonnes, which is 8.6% more than in the same period last year.
In general, in January-May 2021, Ukrainian coke and chemical plants received 5.64 million tonnes of coal for coking, which is 5.4% more compared to January-May 2020. At the same time, the share of imported coal in the total supply amounted to 70.9% versus 71.8% in January-May 2020.
Some 3.424 million tonnes of coke (101.8% compared to January-May 2020) were supplied to Ukrainian metallurgical enterprises, including 3.346 million tonnes of Ukrainian origin (100.3%), and 68,000 tonnes of imported (4.53 times more). The share of imported coke in the total supply amounted to 1.99% versus 0.45% in January-May last year.
In addition, in January-May 2021, some 1.5 million tonnes of scrap metal were procured (134.8% compared to the same period in 2020), of which 1.354 million tonnes (123.5%) were supplied to Ukrainian consumers as imported. Exports of scrap metal in January-May 2021 amounted to 146,000 tonnes (887%).
It is noted that the provision of metallurgical enterprises with Ukrainian iron ore raw materials for the specified period was carried out in accordance with the needs of metallurgical production. The iron ore was not imported. Iron ore exports in January-May 2021 amounted to 18.54 million tonnes (98.2% compared to the same period in 2020).
According to the updated data of Ukrmetalurgprom, in January-May of this year, 14.029 million tonnes of sinter were produced (107.8% versus January-May 2020), 4.107 million tonnes of gross coke with moisture content 6% (102.2%), some 8.903 million tonnes of cast iron (109.1%), some 8.987 million tonnes of steel (108.3%), some 8.023 million tonnes of rolled products (108%), and 390,000 tonnes of pipe products (115.8%).
As of June 10, 2021, of the main operating production facilities 18 out of 21 blast furnaces, seven out of eight open-hearth furnaces, 14 out of 16 converters, five out of 15 electric furnaces and 16 out of 17 continuous casting machines were in operation.

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UKRAINE RAISES IMPORT OF COKING COAL

Coke and chemical plants of Ukraine in January-April of this year imported 3.13 million tonnes of raw coking coal and coking coal concentrate, which is 1.9% more than in the same period last year.
According to the information report of the Ukrmetalurgprom association, the supply of Ukrainian coal mined during this period amounted to 1.27 million tonnes, which is 0.3% more than in the same period last year.
In general, in January-April 2021, Ukrainian coke and chemical plants received 4.4 million tonnes of coal for coking, which is 1.4% more compared to January-April 2020. At the same time, the share of imported coals in the total supply amounted to 71% versus 70.7% in January-April 2020.
Some 2.725 million tonnes of coke (101.3% versus January-April 2020) were supplied to Ukrainian metallurgical enterprises, including 2.683 million tonnes of Ukrainian origin (100.3%), and 42,000 tonnes of imported coke (2.8 times more than in January-April 2020). The share of imported coke in the total supply amounted to 1.54% versus 0.56% in January-April last year.
In addition, in January-April 2021, some 1.187 million tonnes of scrap metal were procured (130.1% compared to the same period in 2020), of which 1.1 million tonnes (122.1% compared to January-April 2020) were supplied to domestic consumers as imported. Exports of scrap metal in January-April 2021 amounted to 87,000 tonnes (750% compared to the same period in 2020).
It is noted that the provision of metallurgical enterprises with Ukrainian iron ore raw materials for the specified period was carried out in accordance with the needs of metallurgical production. The iron ore was not imported. Iron ore exports in January-April 2021 amounted to 14.21 million tonnes (92% compared to the same period in 2020).
According to the updated data of Ukrmetalurgprom, in January-April of this year, enterprises produced 11.037 million tonnes of sinter (107% versus January-April 2020), some 3.251 million tonnes of gross coke with moisture content 6% (101.1%), some 7.073 million tonnes of cast iron (109%), some 7.136 million tonnes of steel (107.2%), some 6.39 million tonnes of rolled products (107%), and 290,000 tonnes of pipe products (105.2%).
As of May 13, 2021, of the main operating production facilities 17 out of 21 blast furnaces, seven out of eight open-hearth furnaces, 12 out of 16 converters, five out of 15 electric furnaces and 15 out of 17 continuous casting machines were in operation.

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UKRAINE CUTS IMPORTS OF COKING COAL BY 6.4%, SCRAP PROCUREMENT BY 4% IN 2020

Coke and chemical plants of Ukraine in 2020 imported 9.67 million tonnes of raw coking coal and coking coal concentrate, which is 6.4% less than in 2019.
According to the report of the Ukrmetalurgprom association on Monday, the supply of Ukrainian coal last year amounted to 3.62 million tonnes, which is 3.5% more than in 2019.
In general, in 2020, Ukrainian coke and chemical plants received 13.29 million tonnes of coking coal, which is 3.9% less compared to 2019. At the same time, the share of imported coal in the total supply amounted to 72.8% versus 74.77% in 2019.
Some 8.18 million tonnes of coke (92.7% compared to 2019) were supplied to Ukrainian metallurgical enterprises, including 8.03 million tonnes of Ukrainian origin (95.2%), and some 150,000 tonnes of imported (38.6%). The share of imported coke in the total supply amounted to 1.83% versus 4.41% in 2019.
In addition, over the past year, 2.929 million tonnes of scrap metal were procured (96% compared to 2019), of which 2.893 million tonnes (96.1% compared to 2019) were supplied to Ukrainian consumers as imported. Exports of scrap metal amounted to 36,000 tonnes (85.1%).
It is noted that the provision of metallurgical enterprises with Ukrainian iron ore raw materials for the reporting period was carried out in accordance with the needs of metallurgical production. The iron ore was not imported. Iron ore exports amounted to 46.23 million tonnes in 2020 (some 116% compared to 2019).
According to the updated data of Ukrmetalurgprom, in 2020 enterprises produced 31.91 million tonnes of sinter (103.3% over the same period in 2019), some 9.67 million tonnes of gross coke (96.1%), some 20.423 million tonnes of cast iron (101.8%), some 20.616 million tonnes of steel (98.9%), some 18.427 million tonnes of rolled products (101.2%), and some 850,000 tonnes of pipe products (83, 8%).
As of January 15, 2021, of the main operating production facilities, 17 out of 21 blast furnaces, seven out of eight open-hearth furnaces, 12 out of 16 converters, four out of 15 electric furnaces and 16 out of 17 continuous casting machines are in operation.

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UKRAINE INCREASES IMPORTS OF COKING COAL BY 7%

Coke plants of Ukraine imported 7.19 million tonnes of coking coal and coal concentrate for coking in January-August 2019, which is 7% less than in January-August 2018. According to the Ukrmetallurgprom association, in February 2019, 760,000 tonnes was imported (780,000 tonnes in July 2019).

Ukrainian coal in the amount of 2.26 million was shipped to the plants in January-August 2019, which is 32% more compared with January-August 2018. In August, 430 tonnes were delivered (110% compared with July).

In January-August 2019, Ukrainian coke plants received 9.45 million tonnes of coking coal, which is the same as in January-August 2018. The share of imported coal was 76.1%. In August 2019, 1.19 million tonnes of coking coal was shipped (103% compared with July 2019).

Steel enterprises in Ukraine received 6.16 million tonnes of coke in January-August 2019 (97% compared with January-August 2018), including 5.8 million tonnes of Ukrainian coke and 0.36 million imported coke. The share of imported coke of total supplies was 5.8%.

In August 2019, steel enterprises received 753,000 tonnes of coke (106% compared with July), including 733,000 tonnes of Ukrainian coke and 20,000 tonnes of imported coke.

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UKRAINE INCREASES IMPORTS OF COKING COAL

Coke plants of Ukraine imported 1.87 million tonnes of coking coal and coal concentrate for coking in January and February 2019, which is 3% more than in January and February 2018.
According to the Ukrmetallurgprom association, in February 2019, 870,000 tonnes was imported (86% compared with January 2019).
Ukrainian coal in the amount of 450,000 was shipped to the plants in January-February 2019, which is 10% less on January-February 2018. In February, 200 tonnes were delivered (86% compared with January).
In January-February 2019, Ukrainian coke plants received 2.32 million tonnes of coking coal, which is 2% more compared with January-February 2018. The share of imported coal was 80.6%. In February 2019, 1.07 million tonnes of coking coal was shipped (85% compared with January 2019).
Steel enterprises in Ukraine received 1.54 million tonnes of coke in January-February 2019 (91% compared with January-February 2018), including 1.43 million tonnes of Ukrainian coke and 0.11 million imported coke. The share of imported coke of total supplies was 7.2%.
In February 2019, steel enterprises received 727,000 tonnes of coke (89% compared with January), including 677,000 tonnes of Ukrainian coke and 50,000 tonnes of imported coke.

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METINVEST BUYS 24.99% STAKE IN DONETSKSTEEL’S COKING COAL PRODUCERS FOR ABOUT $190 MLN

Metinvest Group has officially announced it has bought up to 24.99% stake in Donetsksteel’s coking coal producers for about $190 million. “The Group has secured additional long-term supply of high-grade coking coal by investing in production cooperation and acquiring up to 24.99% of some coking coal assets in Ukraine,” it said in a statement on the Irish Stock Exchange on August 16. “The assets include several extraction, enrichment and sale entities, the most significant of which is Pokrovske Colliery and Svyato-Varvarinskaya Enrichment Plant, which together form the largest coking coal extraction and production business in Ukraine [until recently, they were part of the industrial and financial group Donetskstal, also known as Donetsksteel],” the statement said.
They are located on the border of Dnipropetrovsk and Donetsk regions, close to Metinvest enterprises. The assets are registered in accordance with Ukrainian law and none is located in the non-controlled territories of Ukraine.
According to Metinvest, the acquisition is in line with the Group’s strategic priority of improving its self-sufficiency in coking coal to strengthen its vertical integration.
As of December 31, 2017, the long-life proven and probable coal reserves amounted to 81 million tonnes, as calculated according to JORC methodology as at January 1, 2013, and adjusted for production in 2013-17. In 2017, raw coal extraction was 4.3 million tonnes, while coking coal concentrate production was 2.6 million tonnes.
Metinvest says sale products mostly consist of high-quality K-grade coal (hard coking coal, most of whose quality characteristics are in line with the Platts requirements for the Premium Low Vol HCC benchmark), which is used in coke production.
The Metinvest Group is a vertically integrated group of steel and mining companies in Donetsk, Luhansk, and Dnipropetrovsk region. Its major stockholders are SCM with 71.24% and Smart-Holding with 23.76%, which jointly manage the group.

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