Reports
- 22.06.10
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Avdiyivka Coke. MMK unlocks capacity
The pending Metinvest-MMK Illicha M&A deal will allow Avdiyivka Coke to sharply boost output on a pick-up in sales to MMK. With enough idle facilities to meet MMK’s near-term demand, Avdiyivka is poised to become a major coke supplier to the mill already in 2011. The market has yet to price-in the coke player’s improving fundamentals and we recommend looking at AVDK as the top pick in the Basic Materials sector... - 21.01.10
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Ukrainian Steel Initiating Coverage
The Ukrainian steel story is one of sustainable growth of local mills’ output, which will be facilitated by Ukraine’s secured niche on the global steel market and benefit from the as yet untapped potential for profitability growth. We recommend looking at mills with the highest exposure to semi-finished products and greatest potential for efficiency improvement. Alchevsk Steel (ALMK), Enakievo Metal (ENMZ), and Azovstal (AZST) fit the criteria; with their significant exposure to semi-finished production, they outperformed the domestic sector in 2009 and are expected to retain leading positions in 2010.
