Metinvest starting up blast furnace at Azovstal

Azovstal, a subsidiary of Ukraine’s largest steel
producer Metinvest (METINV), is starting up blast furnace (BF) No. 3, according
to an August 13 report by news.bigmir.net, a news site, which cited Metinvest’s
press service.

Dmytro Khoroshun: The launch
of BF No. 3, which is likely in the coming weeks, will boost Azovstal’s hot
iron capacity by 1.3-1.6 mmt p.a. to 3.7-4.0 mmt p.a., which translates to
11.5-13 kt of steel per day. However, Azovstal will likely keep its steel
production at lower levels, around the 9.7 kt per day achieved in July,
because the plant currently operates only one of its two oxygen converters.

Azovstal’s plans for launching its second converter
that is currently shut down remain unclear after the July hot iron mixer accident.

We maintain our bullish view on METINV bonds.