Ferroalloy Production Down 7.5% YOY In Jan ? May 2005 To 699.14K Mt

Nikopol Ferroalloy (NFER: SELL), Ukraine’s largest ferroalloy producer, controlling 55.2% ot total production in the country, reduced its output 13.0% yoy during the period. Zaporizhzhya Ferroalloy (ZFER: SELL) cut its production by 6.4% yoy. Stakhanov Ferroalloy (SFER: SELL) increased ferroalloy production by 109.5% yoy in the same period. Concorde Capital: The decline of ferroalloy production is connected to a drop in global ferroalloy prices. Ukrainian ferroalloy makers sell the majority of their output for exports and are, therefore, affected by the global market. In the case of Nikopol Ferroalloy, the situation is exacerbated by ownership disputes with the state and conflicts with Privat group. The surge in production at Stakhanov Ferroalloy occurred largely because the company had a significant amount of downtime in early 2004.