Alchevsk Steel to switch on third hot iron facility in mid-November

Alchevsk Iron & Steel (ALMK UK) plans to restart its blast furnace #4, which has a monthly capacity of 82 kt of hot iron, in mid-November, Metal Courier reported last week. The restart, which was postponed several times due to steel market weakness, follows the reconstruction of the facility that began in  October 2010. In 10M12, Alchevsk Iron & Steel kept hot iron and steel production almost flat yoy at 2.9 mmt and 3.2 mmt respectively.

Roman Topolyuk: The decision to launch blast furnace #4 at Alchevsk Iron & Steel is surprising, since market demand continues to be weak along with steel prices. Slab prices (34% of Alchevsk’s product mix) decreased 3.6% throughout October to USD 458/t. The addition of a third operating blast furnace, once confirmed, can positively influence hot iron production at Alchevsk Iron & Steel in 2013, and will have only a marginal impact on 2012 output.