OREANDA-NEWS. April 07, 2010. The Ukrainian coke producers have increased 6% humidity coke output by 13% y/y in 1Q2010 to 4.546mn tones. These data were announced by the general director of the Ukrainian coke producers associations “Ukrkoks” Mr. Starovoit. The Ukrainian coke producers do not have any problems with sales at the moment because of the global demand for steel products. The coking coal deficit for coke production purposes is currently covered by imports.

This news is positive for coke producers stocks and, above all, for Avdeevka <AVDK UK BUY> and Yasynivka <YASK UK BUY> coke plants, which have their own coal suppliers as well as reliable customers. The companies increased their quarterly output by 25 and 12% y/y, respectively. This fact in conjunction with the coke price hikes in 1Q2010 underlie our BUY recommendation.