Metinvest to close two coking batteries at Azovstal this month

Azovstal (AZST UK) will decommission two coking batteries this month, after phasing out one battery in June, parent Metinvest (METINV) informed. With this move, the holding will realize its plan to decommission three out of six coking batteries at Azovstal far ahead the schedule (earlier announced plan envisaged 2014 as shuttering deadline). The parent holding informed the early decommissioning became possible after successful launching of PCI facility at Mariupol Illich Steel (MMKI UK).

Roman Topolyuk: According to Metal Courier, the launch of PCI facility at Mariupol Illich Steel would allow the company to decrease coke consumption by 150 kg per tonne of pig iron. This translates in annual economy of about 0.6-0.7 mmt of coke at Illich Steel (with its 4.0-4.5 mmt p.a. hot iron production), or close to the estimated capacity of two coke batteries set for closure (around 0.8 mmt). We estimate the total effect of PCI facilities, which includes ceasing natural gas consumption, at USD 30 per tonne of pig iron, which yields potential annual savings of around USD 120 mln for Metinvest, assuming all Illich’s blast furnaces are operating on PCI coal.