Dnipro Metallurgical Plant stops steel production

There are several reasons for the shutdown of the Dnieper metallurgical production - repairs, unofficial - the unprofitability of steel smelting due to the restrictions of the Russian Federation on the supply of coke.

The Dnieper Metallurgical Plant (DMZ) of Kharkiv businessman Alexander Yaroslavsky, which has stopped since January 1, 2022, will resume its work immediately after a series of current repairs in the main shops. Maksim Minyushkin, Advisor to the General Director for Investments of DCH Steel, told Interfax-Ukraine about this.

“DMZ annually in January suspends the metal site for current repairs in the main shops. Koksokhim is working, 4 batteries have just been overhauled there. We plan to have time to carry out all the repairs in a month. If earlier, we will start immediately, ”Minyushkin said.

According to another version, which was announced by an unnamed source of the newspaper "Economic Truth", a metallurgical plant in Dnipro suspended its work due to the unprofitability of steel production.

“There are a number of reasons: uncertainty in the supply of coal from Russia, difficulties with the logistics of raw materials due to the lack of a car fleet and energy prices. This in the complex adds up to the cost of production, which does not allow the enterprise to be profitable, "- said the source of the publication.

According to him, there are no exact dates of downtime yet, but a preliminary shutdown is expected for a period of one month, and the decision to resume work will depend on the situation on the rolled metal market.

As previously reported, the metallurgical shops of the DMZ resumed work after a downtime in May-June 2020, before that, for seven months, the plant had been producing only coke-chemical processing products.

DMZ specializes in the production of steel, cast iron, rolled products and products from them. In 2020, the plant reduced steel output by 66% compared to 2019 - to 175 thousand tons, pig iron - by 67.3%, to 160 thousand tons, rolled products by 68.4%, to 140 thousand tons.

On March 1, 2018, the DCH group of Alexander Yaroslavsky signed an agreement to purchase the Dnieper Metallurgical Plant from the Russian Evraz.