It is reported that Moldavian Metallurgical Plant has decided to temporarily stop the operations at its steelmaking shop units due to lack of orders and high prices for scrap. In addition, in July MMZ plans also to start the repair works at its continuous light section rolling mill 320/150 which will also influence the decrease of the plant's rolled steel product output, the production plan of which is to be made according to received orders and scrap supply.

According to the reports, by the end of June MMZ produced about 42,3000 tonnes of steel down by 36%MoM and about 38,000 tonnes of rolled steel products down by 29%MoM of which 30,500 tonnes was rebar up by 10%with the rest being wire rod.

In H1 2010 MMZ produced about 250,000 tonnes of steel up by 75%YoY and 215,000 tonnes of rolled steel products up about 30% including 130,000 tonnes of rebar. In early June this year, MMZ also decided to delay the project for the construction of its new 1 million tonnes capacity electric arc furnace, with investments estimated at USD 200 million, from 2011 to 2013, and to freeze the construction of its new continuous caster due to the instability of the steel market.

According to the minister of economy of the unrecognized Transdniestrian Moldavian Republic, such a difficult situation at MMZ is caused not only by the crisis, but also by the need of the plant to repay preferential credits provided under the anti-crisis program. The amount MMZ must repay to the state amounts to about USD 10.6 million.

(Sourced from www.steelorbis.com)
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