Ferroalloy Output Down 4.1% YoY In Jan-Apr 2005

Ukrainian ferroalloy smelters produced 563.6K mt of ferroalloys for the period. Nikopol Ferroalloy (NFER) sustained the largest drop of production at 9.7% yoy to 314.2K mt. Zaporizhzhya Ferroalloy (ZFER) reduced its output by 5.2% yoy to 164.7K mt. Stakhanov Ferroalloy (SFER) increased production by 167% yoy for the period.Concorde Capital: We believe the decline in ferroalloy output is due to a cooling down in the steel market, coupled with a global over-supply of ferroalloys in 2H04. In the case of NFER, the situation was exacerbated by ?re-privatization? issues and corporate wars with Privat Group. SFER?s surge in production on a yoy basis was due to the fact that the company did not operate in January?March 2004.