Alchevsk Steel to outperform steel sector in December

Alchevsk Iron & Steel (ALMK UK) plans to increase finished products output 13% mom to 369 kt in December, the Metal Courier reported on Dec. 4. The main growth driver will be slabs and billets output (+31% mom to 167 kt ,and +69% mom to 87 kt, respectively), while heavy plate production will be cut 15% mom to 88 kt. Long steel products output will decline 28% mom to 27 kt.

Roman Topolyuk: Despite stable or falling November prices for a wide range of steel products, Alchevsk Iron & Steel continues to ramp up production following the restart of blast furnace No. 4 in November. Such an approach will help to better dilute fixed production costs, though it will not allow the company to break even in 2012 (it reported a net loss of USD 17.3 mln in 1H12). From an operational performance standpoint, Alchevsk Iron & Steel will outperform Ukraine’s steel sector in December, which will increase production 3% mom, according to data published on Dec. 4 by the Economy Ministry. In 2012, the company is set to decrease output by 4% to 3.47 mmt of finished steel products.