News and Events

Coke prices up by 6pct on the Ukrainian market

According to Metal Courier, since the beginning of April 2011, coke prices on the Ukrainian market have risen 6% M o M to USD 347 per tonne. Metallurgical coke prices for Avdiivka Coke have risen also by the same 6% to USD 351 per tonne and coke nut has appreciated 5% to USD 276 per tonne. Domestic prices for coking coal have stood unchanged. The price of hard coal remained at USD 199 per tonne and other coking coal grades stayed firm.

The increase in value of coke on the domestic market is outpacing the appreciation of coking coal. The spread between prices for coke and coking coal grade K have jumped 19% to USD 148 per tonne since the beginning of April in comparison to the average spread in 1Q11.

Phoenix Capital analyst said “Though we conservatively expect this market trend for coke to reverse in the beginning of June we do not exclude the possibility of further increases in the price of coal. Such periods of increased spreads will have a positive impact on domestic coke producers namely for 2Q11 financial performances of Avdiivka Coke, Yasynivka Coke and Alchevsk Coke.”

He added “This was the case last year when the spread reached USD 143 per tonne in April 2010 and peaked at USD 148 per tonne in May. The current EV/EBITDA 11E multiple is at the level of 3 for AVDK, 3.1 for YASK and 5.2 for ALKZ.”

(Sourced from www.phoenix-capital.ua)