Coke Production Increases by 9.9% yoy in 2M08.

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Company, ths mt                 2M08  2M07 Chg,yoy
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Avdiyivka Coke (AVDK: BUY)   748   512   46.1%
Bagliy Coke (BKOK: BUY)       120   103   16.5%
Alchevsk Coke (ALKZ: HOLD)  597   505   18.2%
Yasynivsky Coke (YASK: BUY)  277   288   -3.8%
ZaporizhCoke (ZACO: SELL)    283   314   -9.9%  
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Total, Ukraine                       3,521 3,203    9.9%     
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Source: Metal Expert

Andriy Gerus: In terms of exports, Bagliy, Yasynivsky and Avdiyivka all saw strong growth the first two months of the year: 931% yoy (to 53 ths mt), 51% yoy (to 22 ths mt), and 80% yoy (to 12 ths mt), respectively. We remain bullish on Avdiyivka and Bagliy Coke, given their positive production and export growth to start off 2008. Though its output is slightly down, we still believe Yasynivsky Coke’s mid-term prospects are bright due to strong demand and its secured coal supply. Meanwhile, ZaporizhCoke’s poor operating results reinforce our SELL recommendation.