Evraz Vitkovice Steel halted its production earlier this month, due to low demand for rolled products and an effort by the company to optimize its raw-material supplies. 8% of its 1,115 workers have reportedly been sent home with 80% pay. ArcelorMittal Ostrava (AMO), which sells about one-third of its pig iron to Evraz, said that these deliveries have been suspended and that negotiations continue. AMO, in turn, buys 34% of the coking coal of NWR. NWR’s OKD unit said that nothing has fundamentally changed so far in terms of its deliveries. However, Evraz’s GM said earlier this year that the company is considering ending its steel production. We consider this as slightly negative, we see a risk for NWR that AMO could lower its coking coal demand in 4Q12 if the Evraz’s steel mill shutdown to be persistent.