Metinvest iron ore concentrate output rises 4% in 4M19

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.80 mmt (93.2 kt per day) in April, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 0.3%
m/m gain on a daily average basis. The holding’s pellet output was 881 kt in
April, a 3.7% m/m decrease on a daily average basis.

Concentrate production at Inhulets Iron Ore gained
0.9% m/m in April to a daily rate of 31.1 kt. Production at Northern Iron Ore
inched up 0.8% m/m to 34.2 kt per day. Production at Central Iron Ore was flat
m/m at 11.9 kt per day, whereas output at Southern Iron Ore slid 1.2% m/m to
34.9 kt per day.

In 4M19, Metinvest’s attributable output of iron ore
concentrate rose 3.5% yoy to 11.08 mmt, or 92.4 kt per day.

Dmytro Khoroshun: Because of Metinvest’s
strong year-to-date iron ore output and global market supply concerns after the
January Vale mine disaster in Brazil, we upgrade our estimate for Metinvest’s
2019 attributable iron ore concentrate output to 33 mmt (91 kt per day), or
4-5% more yoy. The recent management guidance for Metinvest’s
subsidiaries (excluding Southern Iron Ore) is for a 4-5% yoy increase, or by
1.2-1.3 mmt.