Metinvest may launch upgraded blast furnace at Azovstal

Ukraine’s largest
steel producer, Metinvest (METINV), is planning to launch on Apr. 9 three
hot-blast stoves at blast furnace No. 3 at its Azovstal factory
(AZST UK), according to
an Apr. 9 report by mariupolnews.com.ua, a news site.

Metinvest has been
reconstructing BF No. 3 at Azovstal since 2017. The hot iron capacity of BF No.
3 will increase as a result of the project by 0.5-0.8 mmt per year to 1.3-1.6
mmt per year. The total CapEx is expected to amount to USD 70-75 mln. After the
launch of Azovstal’s BF No. 3, Metinvest was planning to shut down BF No. 6 at
Azovstal (annual hot iron capacity of about 1 mmt per year) for a three-year
upgrade.

Dmytro Khoroshun: The
planned launch of hot-blast stoves means that Azovstal might be gearing up for
tests of BF No. 3 and its eventual launch within weeks, or a few months at
most. Metinvest’s progress with this strategic CapEx project is positive, and
should enable the holding to boost its pig iron production by 0.3-0.6 mmt per
year (after the shutdown of BF No. 6 at Azovstal).