Warsaw (Puls Biznesu) – In June 2005, the average coke price amounted to USD 220 (xxx) a tonne. In April 2004, steel plants paid even USD 445 a tonne, over 50 percent more. “One of the reasons is smaller production of steel”, Jozef Mielnikiewicz, the CEO of Polski Koks, coke export commented. The production of steel made with the use of coke fell in the first half of 2005 by nearly 20 percent. Steel plants use over 82 percent of coke produced in Poland.
Negative signals appeared at the beginning of the year. Many world steel plants cut production to decrease stocks and prevent steel price falls, including Arcelor and Mittal Steel. Guy Dolle, Arcelor CEO has said recently that steel production would decrease by over 2m tonnes in comparison to the same period of last year. “There will be further cuts in the third quarter. The fourth should be a little better”, Guy Dolle said. In Mittal Steel Poland which comprises four steel plants, production fell by nearly 20 percent.
Koksownia Zdzieszowice coke plant owned by Mittal Steel Poland, and one of the biggest coke plants in Poland cut production this year. The company employs 2,600 people and produces 4.5m tonnes of coke a year, which makes up 55 percent of production in Poland. Last year, it had PLN 1.4 billion (EUR 343.6m) of net income. The plants trade unionists fear that jobs will be cut. Koksownia Przyjazn, Poland’s second largest coke plant which produces 2.5m tonnes a year is also worried. “We export over 90 percent of our production. We have long-term contracts with Arcelor. But they may want to renegotiate these agreements”, Lucjan Noras, Koksownia Przyjazn CEO said.
(PLN 1 = EUR 0.245)