Metinvest shuts down converter at Azovstal for repairs again
Ukraine’s largest steel producer Metinvest (METINV) shut down for repairs oxygen converter No. 2 at its Mariupol-based plant Azovstal on Apr. 15, Interfax-Ukraine reported the same day, citing a local ecology activist. The shutdown is due to community complaints related to pollution, which increased substantially in recent weeks, according to Interfax.
Azovstal also plans to shut down converter No. 1 in September 2018 for a UAH 190 mln maintenance, according to a local Mariupol news site 0629.com.ua, which cited Metinvest’s press service.
Dmytro Khoroshun: Each of Azovstal’s two converters, which comprise the plant’s entire steelmaking capacity, are able to produce up to 7.3 kt of steel per day and had recently been producing at a rate of about 6 kt per day, we estimate.
It is disappointing that Azovstal is repairing the same converter less than two months since the last maintenance. Nevertheless, considering the spare capacity at Azovstal and at Metinvest’s other Mariupol plant, Ilyich Steel, we are keeping unchanged for now our forecast of Metinvest's 2018 steel output at about 7.3 mmt, or 4-5% less yoy.