According to media reports, the owners of one of the largest Ukrainian steelmakers, Zaporizhstal, have intensified talks to sell their metals and mining assets.
Accordingly, among the potential buyers of Zaporizhstal are considered to be the Ukrainian mining and steel producing company Metinvest Holding, the world's largest steelmaker ArcelorMittal, as well as Russian steel producers Metalloinvest and NLMK. However, market players think it more possible that Metinvest would be interested in the acquisition, as it is a vertically integrated metal and mining company, but does not produce coils in Ukraine. In addition, Metinvest provides Zaporizhstal with two thirds of its iron ore needs and with more than two thirds of its coke needs. The companies have declined to comment on the issue.
Currently, Zaporizhstal holds a 40 percent share in the domestic market of hot rolled flat steel products and a 52 percent share in the local cold rolled steel market. However, the domestic market consumes only 37 percent of its production, and the company exports the rest of its products to around 70 countries worldwide.In 2009, Zaporizhstal's finished steel production fell by 15.5 percent and its crude steel production dropped by 16.9 percent year on year, to about 2.75 million mt and 3.28 million mt respectively.
Industry analysts estimate the value of the so-called Zaporizhstal holding company, including Zaporizhkoks and Zaporizhya Iron Ore, at $1.0-1.9 billion.