It is reported that in February steel output in Ukraine fell by 7% MoM largely due to the breakup in Yenakievo Iron and Steel Works and fewer work days in February. ALMK has been the growth leader with 11% steel output increase.
According to a Millennium Capital analyst, ” The news is mixed for the steel producers. Yenakievo Iron and Steel Works halved its output due to the 2-week long breakup in the oxygen block operations. Despite the successful resumptions of its operations, the large gap in the production process will have an adverse imprint on the Q1 2011 results of the company. We view Alchevsk Iron and Steel Works as the most prospective steel stock as it is continuing the double-digit output growth for the 3rd month in a row, successfully securing raw material supplies for the production expansion”. (Millenium Capital)