Yasynivka becomes latest Donbas coke plant to lose power

Обзоры по компаниям и отраслям 22.08.2014 The Yasynivka Coke Plant (YASK UK) in the Donetsk region lost its electricity supply due to nearby armed battles, the National Security and Defense Council reported on Aug. 21. The plant is located in an active war zone, between the cities of Makiyivka and Horlivka. The factory belongs to the Donetskstal Group controlled by Viktor Nusenkis. A nearby coke plant, Avdiyivka Coke (AVDK UK), has yet to get its electricity restored after losing its power connection on Aug. 17. To prevent the failure of coke batteries due to their temperature falling below minimal levels, the plant’s specialists are trying to heat coke batteries with natural gas (instead of electricity), according to an Aug. 20 report from parent holding Metinvest (METINV), which is controlled by Rinat Akhmetov. Its reconnection to its gas network should be finished today, the report said. In other news, energy holding DTEK (DTEKUA) reported on Aug. 21 that the Yenakiyeve Steel (ENMZ UK) and Yenakiyeve Coke plants of Metinvest are still disconnected from power. DTEK’s mine Komsomolets Donbasa (SHKD UK) was targeted by artillery shooting on Aug. 21, the holding reported (the second shooting in a week), yet it remained connected by power lines, according to DTEK’s report. By mid-August, Alchevsk Coke (ALKZ UK), the second-largest Ukrainian coke producer and part of the Industrial Union of Donbas holding, has shifted into idle mode due to logistics constraints, causing Alchevsk Steel (ALMK UK) to suspend steel production. Roman Topolyuk: The news about Yasynivka Coke turning idle is very negative for Metinvest (METINV), since the coke producer has substituted the bulk of its supplies that were lost after electricity supply was interrupted at Avdiyivka Coke. The nation’s top steel producer is now left without its bulk necessary input for hot iron and steel production and will be forced to further reduce steel production after already halting operations at Yenakiyeve Steel (ENMZ UK) and announcing plans to reduce output by 45% in August at Mariupol Metallurgical. Now that 54% of coke production in Ukraine is paralyzed due to warfare, it will be hard for the nation’s steel makers to source necessary input on the domestic market. Even if coke is found on the international market, its delivery to Ukraine will be constrained by railway bottlenecks. Therefore, the Ukrainian steel industry is heading towards operating at record-low capacity load volumes that were last seen in autumn 2008.