AMKR and Ferrexpo production suffers due to hostilities

Ukrainian steelmaker ArcelorMittal Kryvyi Rih (AMKR) has limited electricity consumption of its most energy-intensive equipment and temporarily cut production following new Russian missile strikes against Ukraine, Kallanish reports.

“This is important for reducing electricity consumption in Kryvyi Rih and for the safety of personnel,” says a spokesman for the steel plant. “We hope to return to the regular schedule of production equipment after the stabilization of the energy supply in the country. However, products are being shipped to customers as scheduled.”

Meanwhile, Ukrainian iron ore mining and production company Ferrexpo was forced to halt production after employees were injured in attacks, the company said.

The state electrical infrastructure, located outside the group's operations, was damaged. Limited power is available for company operations that are prioritized for critical equipment required for essential services and local communities.

Engineers are currently assessing damage to electrical infrastructure and estimating expected downtime for repairs.

Ferrexpo says it has enough products currently in transit or in stock to meet expected sales volumes, as long as logistics corridors remain available.

“We are working to ensure that power is available to critical areas both at our facilities and in our local communities to ensure the safety of our employees and community members,” says Jim North, CEO of Ferrexpo.

Metinvest, Dneprovsky Metallurgical Plant (DMZ), Interpipe and Centravis did not respond by Tuesday's deadline to Kallanish's request for comment about the impact on production. Metinvest's Kametstal plant and DMZ are located in Kamenskoye, where a power outage was reported on Tuesday.

Earlier, the AMKR stated that it expects an increase in export deliveries of its steel products to the EU countries in the fourth quarter.
Source: Kallanish