It is reported that the Ukrainian steel producer and one of the country largest pig iron exporters Donetskstal has decided as of June 1st to stop operations at one of its two blast furnaces for a period of one month, considering the complicated situation in the world pig iron market.
Accordingly, due to low sales prices for pig iron and increased raw material purchasing costs, economic experts at the plant consider that the operation of one BF is the optimal way of organizing the plant operations in June. The idling of BF No 2 with a 55,000 tons monthly capacity will allow the plant to reduce its output and to focus on reducing its costs, as well as to carry out some planned repairs of the BF shop infrastructure. According to reports, the production target for BF No.1 alone, which has a 90,000 tons monthly capacity, has now been set at about 58,000 tons to 59,000 tons of pig iron per month.
In September 2008, Donetskstal developed and tested costless technology for soft stoppage of the furnaces which, in case of market stabilization, allows the plant to quickly restart operations at the furnaces and to reach previous output levels. Donetskstal also noted that, despite the stoppage of BF No 2 it will be able to fulfill its obligations to consumers.
In April this year, Donetskstal saw its pig iron output decrease by 3.3% YoY to 117,000 tons. Meanwhile, in January to April 2010, Donetskstal increased its pig iron production by 17% to 486,000 tons, crude steel output by 5.8% YoY to 200,000 tons and its finished steel production by 21.2% YoY to 183,000 tons. (SteelOrbis)

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