Azovstal slashed one of six coking batteries, Avdiivka to benefit

Azovstal (AZST UK) decommissioned one of its six coking batteries at the end of June, according to Interfax. The unit is one of three outdated batteries slated for closure over the next three years. The annual capacity of the closed facility is 0.45 mmt. Metinvest, Azovstal’s parent, reiterated previously announced plans to switch off the other two batteries, the aggregate capacity of which is around 0.9 mmt, out of Azovstal’s total 2.50 mmt coke production capacity.

Roman Topolyuk: The closure of the outdated coke production facilities at Azovstal will be compensated by purchases of coke from other enterprises inside Metinvest. Avdiivka Coke (AVDK UK) should benefit from this decommissioning in the short and long-run. According to May production figures, Avdiivka Coke had 9% of spare capacities that could be loaded to compensate for volumes from Azovstal’s battery (400-500 kt). Going forward, Avdiivka Coke could increase its production capacity by launching a new battery, currently in standby mode, with a capacity of 0.7 mmt.