Metinvest is forced to resume sea delivery routes to Mariupol Ilyich Iron and Steel Works and Azovstal. The reason for this is the low acceptance rate of the Kamysh-Zarya – Volnovakha span, the only railroad that connects Mariupol to the rest of Ukraine.
“The limited acceptance rate of the span doesn’t allow increasing Mariupol works output and producing the planned 19.5 thousand tons of pig iron per day. Instead of the needed 19 trains a day Ukrzaliznytsia provides only 13”, said the company in its statement.
To fulfill its contracts Metinvest decided to move to coasting shipping, stopped in November 2015. In the nearest months the company plans to ship 200 thousand tons of iron ore concentrate through Berdyansk port to Mariupol works each month. The first vessel has already been offloaded in Azovstal port.
This is a forced measure and increases raw materials cost by $8-15 per ton, which in its turn increases the price of pig iron. Still, the company sees no other way. (Ukrainian metal)