Ukrainian steelmaker ArcelorMittal Kryvyi Rih (AMKR) has limited
consumption of electricity to its most energy-intensive equipment and
temporarily reduced production, following fresh Russian missile strikes across
Ukraine, the company tells Kallanish.
“It
is important to reduce electricity consumption in the city of Kryvyi Rih and
for personnel safety,” says a spokesperson for the steelmaker. “We hope to
return to the regular production equipment schedule after the stabilisation of
energy supply in the country. However, products are being shipped to customers
on a scheduled basis.”
Ukrainian
iron ore miner and producer Ferrexpo has meanwhile been forced to stop
production. State-owned electrical infrastructure, which is
located outside of the group’s operations, has been damaged. Limited power
supply is available for the company’s operations, which is being prioritised
for critical equipment required for essential services and local communities.
Engineers
are currently conducting an assessment of the damage incurred to electrical
infrastructure and evaluating the expected downtime as repairs are carried out.
Ferrexpo
says it has a sufficient volume of products, either currently in transit or in
stock, to meet its expected sales volumes, subject to logistics corridors
remaining available.
“We
are working to ensure that power is provided in critical areas, both within our
facilities and in local communities, in order to support the safety of our
workforce and community members,” says Ferrexpo chief executive Jim North.
Metinvest, Dnipro Metallurgical Plant (DMZ),
Interpipe and Centravis did not reply before deadline on Tuesday to Kallanish
request for comment about impact on production. Metinvest’s Kametstal works and
DMZ are both located in Kamianske, which was reported to be without electricity
on Tuesday.
AMKR announced earlier it is counting on growth
of export deliveries of its steel products to EU countries in the fourth
quarter (see Kallanish passim).
Ferrexpo’s
output of iron ore pellet declined by 60% on-quarter and 68% on-year to 0.8
million tonnes in the third quarter due to Russia's invasion and associated
logistics constraints requiring production to be curtailed. Nine-month pellet
production fell 31% on-year to 5.64mt.