Avdiyivka Coke, Komsomolets Donbasa Mine stopped due to armed fighting

Metinvest’s leading coke provider Avdiyivka Coke (AVDK UK) lost its electricity as a result of armed fighting in the city of Avdiyivka, the Interfax-Ukrayina news agency reported on July 28, citing the press service of Metinvest. Meanwhile, energy holding DTEK, which controls Donetskoblenergo, the monopoly electricity provider in the Donetsk region, reported its specialists failed to access its sites in Avdiyivka to repair them on July 28. Yet by the early morning of July 29, Avdiyivka was freed from the terrorists, according to media reports not yet officially confirmed.



Metinvest’s website provided no details on the situation in Avdiyivka, while reporting that its steel mills Azovstal (AZST UK) and Ilyich Steel (MMKI UK) had to shift their blast furnaces into low gear as their stockpiles of metallurgical coke are for less than three days of normal work.



Another company whose operations were disrupted by war was coal mine Komsomolets Donbasa (SHKD UK), which was shut down because of the high risk posed to its employees, DTEK reported on July 28.



Some fighting was reported near the Starobesheve Power Plant of Donbasenergo (DOEN UK), according the company’s release of July 28. Nevertheless, the power plant has more than doubled its power output over the last day, having switched on seven power units in the evening of July 28 (vs. its usual working mode of two-three power units in the summertime).



Alexander Paraschiy: It took three days for Donetskoblenergo to recover the power lines of Avdiyivka Coke when they were damaged last time (on July 22). If the fighting stops permanently in Adviyivka today, the plant may recover its work in three days as well, unless there is more damage to its production facilities.



While the war zone in Donbas is decreasing, the concentration of terrorists in the cities that are under their control is growing, and correspondingly, the risk of damage to industrial enterprises is also increasing. We see high risks posed to DTEK’s Zuyivska Power Station (a good indicator that the station is under significant risk is the abnormal increase of production of the nearby Starobesheve station of Donbasenergo) and for Starobesheve as well.



Increased risk of damage exists for companies located in cities of Stakhanov: Stakhanov Ferralloy (SFER UK) and Stakhanov Railcar (SVGZ UK); Alchevsk: Alchevsk Steel (ALMK UK) and Alchevsk Coke (ALKZ UK); Horlivka: Stirol (STIR UK); and Luhansk: Luhanskteplovoz (LTPL UK). Risks are also posed for the coal mines of Coal Energy (CLE PW), Khartsyzk Pipe (HRTR UK) and Snizhne Machinery Plant of Motor Sich (MSICH UK), as well as for the power grids of Donetskoblenergo and the infrastructure sites of Ukrzaliznytsia in the Donetsk and Luhansk regions.

Источник: Конкорд Капитал