AMKR, Ferrexpo production suffers amid Russian strikes
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.
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