Metinvest steel output drops 10.9% m/m in November

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 16.8 kt per day (or 505 kt per month) in November, a
10.9% m/m loss, according to Concorde Capital’s analysis of separate news
reports by Interfax-Ukraine. That result includes Azovstal (AZST UK) and Ilyich
Steel (MMKI UK) figures.

Ilyich Steel reported an 11.4% m/m drop in steel
production to 7.0 kt per day, while Azovstal’s output lost 10.6% m/m to 9.8 kt
per day in November. The holding’s hot iron output slid 6.3% m/m to 19.4 kt per
day.

In 11M19, Metinvest’s steel output was 7.00 mmt, or
5.1% more yoy.

Dmytro Khoroshun: We are downgrading Metinvest’s 2019 steel production to 7.5-7.6 mmt
(or 2-4% higher yoy) and maintain our neutral view on METINV bonds.