Ukraine’s DMZ temporarily halts billet production

Friday, 04 October 2019 16:58:50 (GMT+3)   |   Istanbul
       

Ukraininan billet, longs and rails producer Dnipro Metallurgical Plant (DMZ), a part of DCH Group, has decided to stop steel production and some rolling equipment due to the unfavourable market situation. Another big mill in Ukraine, DMK, has also announced this week that it will keep some equipment stopped, while other Ukranian mills are also considering such moves.

DMZ has stopped steelmaking capacities which have been producing about 1 million mt per year, and one rolling mill, SteelOrbis has learned. The official reason for the stoppage is preparation work for the investment program to upgrade equipment, according to the producer’s release. But the mill added that “the time period for repairs was chosen taking into account the weak market conditions at the moment, which interfere with the company’s sales.” One rolling mill will stay in operation and will use billet in stocks or purchased from third parties, but the latter has not been decided finally yet and will depend on the market situation.

The billet export volume of DMZ has been reduced in recent months, amounting to about 20,000 mt per month. In favourable market conditions, the producer can sell abroad about 50,000-60,000 mt per month, SteelOrbis has learned.


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