OREANDA-NEWS. October 23, 2009.  In August and September, OJSC “ArcelorMittal Kryviy Rih” had to face very severe situation with coking coal deliveries due to its shortage.

Two of OJSC “ArcelorMittal Kryviy Rih” main suppliers faced some incidents at the enterprises, which caused the reduction of production level. Due to this, deliveries of coking coal for metallurgists were stopped. After overcoming critical situation, despite of concluded contracts with OJSC “ArcelorMittal Kryviy Rih”, coking coal suppliers gave priority to other clients.

In the result of deliveries stoppage, more than 200 KT of hot metal could not be produced at the enterprise in September. In order to have the possibility to fulfill all commitments before consumers, OJSC “ArcelorMittal Kryviy Rih” implemented alternative sourcing from imported coal.

During the past weeks, OJSC “ArcelorMittal Kryviy Rih” team has done the best to overcome this crisis situation influenced upon our Ukrainian and foreign consumers. Thanks to dialog with clients and professionalism of the team of OJSC “ArcelorMittal Kryviy Rih”, we were able to overcome the difficult times. Pig iron output has now reached 15 kt per day.

Situation at the plant has now started to get stabilized. We put our maximum effort to supply our Ukrainian Clients, for which lead time is shorter. Backlog orders will be recovered mid October for domestic market, and in November month for export. In the past three months, our shipments were distributed according to following data:

 

July

August

September

Including ArcelorMittal companies

0.56%

2.03%

1.09%

As it has been reported by many experts, Ukraine is facing a shortage in coking coal supply, which seems to be expected for the coming year. In front of this situation, and in order to prevent any interruption in the operation, OJSC “ArcelorMittal Kryviy Rih” has come back to more imported coal from CIS and North America. This policy will remain until the situation has improved in the country.