The Ukrainian authorities have stated that at 02:50 a.m. on June 6 Russian troops blew up the dam at Nova Kakhovka hydroelectric power plant (HPP) located in the southern part of Ukraine and which is the last and lowest lying dam in the series of hydro power plants, dams and water reservoirs on the Dnipro river. The alleged Russian terrorist action has not only caused the massive flooding of dozens of villages and cities, endangering thousands of civilians, but will also certainly trigger catastrophic ecological effects on the southern part of Ukraine for years.
Along with the severe damage by the floods foreseen to Ukraine’s agricultural potential and population, the uncontrolled water spillage from the Nova Kakhovka water reservoir is clearly affecting the infrastructure of water supply to populated localities in the area and may have an effect on industrial operations in the impacted regions.
As for the potential effect on Ukraine’s steel industry, which has been in a challenging position since February 24, 2022, the logistical operations of the remaining mills may not be affected much, since the potential of the Dnipro river has not been used to its fullest extent due to war-related reasons. Metinvest’s Zaporizhstal, located in Zaporizhzhya which is also home to a large hydro power plant and a water dam right next to Nova Kakhovka, is working in regular mode. In fact, the concerns regarding the situation at Zaporizhzhya nuclear power station, which uses Kakhovka waters for its cooling systems, are a much bigger issue.
Metinvest’s billet and longs producing asset, located in Kamyanske city in the Dnipro region, is also reportedly not affected.
In the meantime, market players have concerns regarding ArcelorMittal Kryvyi Rih, located in Kryvyi Rih, previously largely dependent on Kakhovka reservoir waters. Part of the city does not now have water supply and the mill may have problems. According to the latest news, AMKR has established some of its workers in remote office operations due to the lack of water supply to some buildings.
According to the mill’s latest press release, Ukraine’s ArcelorMittal Kryvyi Rih has restricted the consumption of water and has already halted a number of metallurgical production processes. In fact, the company reports it has stopped crude steel production and rolling operations, while only blast furnace and coke battery operations are being continued. It is is expected to take around three to four days to evaluate the prospects of returning to normal operations. Earlier on June 6, AMKR established some of its workers in remote office operations due to the lack of water supply to some buildings.