Metinvest steel output drops 14.5% m/m in October

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 18.9 kt per day (or 586 kt per month) in October, a
14.5% 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 a 25.4% m/m plunge in steel
production to 7.9 kt per day, while Azovstal’s output slid 4.3% m/m to 11.0 kt
per day in October. The holding’s hot iron output dropped 15.0% m/m to 20.7 kt
per day.

In 10M19, Metinvest’s steel output was 6.49 mmt, or
6.4% more yoy.

Dmytro Khoroshun: We are downgrading Metinvest’s 2019 steel production to 7.6-7.9 mmt (or
4-8% higher yoy) and maintain our bullish view on METINV bonds.