Metinvest continue to export billet from Ukraine to Bulgaria (c)

Promet Steel billet requirements in amount of 40,000 tons per month have been fully satisfied internally

Metinvest Group continues to export billet from Ukraine to Bulgarian enterprise Promet Steel, despite disruptions caused by Russia’s invasion of Ukraine. It was stated in the interview to S&P Global Community Insights by Yuriy Ryzhenkov, CEO of the Metinvest Group.

Metinvest has re-rolling production sites in the EU, and UK include a shapes, and bar mill (Promet Steel) in Bulgaria, two flat rolling mills in Italy (Trametal, and Verriera Valsider), and a plate rolling mill (Spartan UK) in England.

Normally semi-finished products for those plants were supplied by Ukrainian Metinvest’s plants. But due to the disruptions caused by the Russian invasion of Ukraine it is currently possible to supply billet only from Ukraine to Bulgaria, while slab feedstock for the flat-rolling mills is being sourced from the third parties.

“Promet Steel remains a rolling mill based on billet supplied from Metinvest’s own billet producer Kamet Steel. Kamet Steel is located in Kamianske in Dnipropetrovsk region, where steelmaking operations continue without disruption. Therefore, Promet Steel’s billet requirements at 40,000 t/month have been fully satisfied”, the message stated.

The deliveries from Ukraine to Bulgaria are going by rail, inland waterways (barge), and sea (using Black Sea ports in Romania, and Bulgaria).

According to Yuriy Ryzhenkov, Metinvest remains present in export markets with billet, rebar, wire road, and other finished long products by keeping Kamet Steel working. The company can sell up to 100,000 tons of billet per month. Although the company is using the Black Sea port of Constanta in Romania, Baltic ports of Swinoujscie in Poland, as well as railway, and barges on the Danube to deliver goods to export markets due to blocked access to Ukrainian Black Sea ports.

Meanwhile, slab shipments from Ukraine to the EU ceased after idling of the two integrated steel production plants Azovstal, and Ilyich Iron & Steel Works, located in war-torn Mariupol. Group’s flat steel re-rollers in the EU had sufficient stock of slabs to maintain production till mid-April.

As a reminder, the enterprises of the Metinvest Group are gradually adjusting to operate as stand-alone businesses with new external supplies, and customers. The decision was made due to a production+ shutdown in Ukraine under Russian invasion.