Zaporizhzhya Aluminum Production Down in 7M06.

Since the beginning of the year Ukraine’s only domestic producer of primary aluminium, Zaporizhzhya Aluminium (ZALK: BUY) has reduced production of this product by 4.4% yoy to 54.1 ths mt. During the same period the company increased production of alumina by 0.6% yoy to 150.2 ths mt. In related news, in 7M06 another domestic alumna producer, Mykholaiv Alumina increased output by 4.7% yoy to 820 ths mt, in connection with a large scale investment program aimed at production expansion. Eugene Cherviachenko: We believe ZALK will make up for this decline in production in the 2H, however, increasing electricity prices remain the biggest threat for the company.