It is reported that during the third week of May Alchevsk Iron and Steel Works (Alchevsk), subsidiary of Ukrainian steel producer Industrial Union of Donbass (ISD), was forced to halt two of its blast furnaces (BFs), i.e., BF No. 3 and BF No. 4 with a total capacity of 144,000 mt of pig iron per month, due to the lack of iron ore.
"Continuation of problems with raw materials supply at ISD-owned steel mills is signals difficulties for the new Russian owners of ISD in solving them," analysts from Astrum Investment Management said.
Accordingly, currently Alchevsk is operating BF No.1 and BF No. 5, with a total capacity of 250,000 mt of pig iron per month.
In May this year, Alchevsk decreased its pig iron output by 12.5 percent month on month to 258,000 mt. In the first five months of the current year, the plant's pig iron production saw a 3.9 percent year-on-year drop to 1.3 million mt.