Metinvest iron ore concentrate output rises 2.1% in October

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.56 mmt (82.6 kt per day) in October, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 5.5%
m/m increase, or a 2.1% m/m increase on a daily average basis. The holding’s
pellet output was 784 kt in October, a 6.7% m/m loss (or a 9.7% m/m decrease on
a daily average basis).

Concentrate production at Inhulets Iron Ore plunged
12.7% m/m in October to a daily rate of 26.6 kt. Production at Northern Iron
Ore jumped 18.1% m/m to 26.8 kt per day. Production at Central Iron Ore inched
up 0.8% m/m to 13.0 kt per day, whereas output at Southern Iron Ore gained 9.1%
m/m to 35.2 kt per day.

In 10M18, Metinvest’s attributable output of iron ore
concentrate slid 0.6% yoy to 26.29 mmt.

Dmytro Khoroshun: We expect Metinvest’s 2018 attributable iron ore concentrate output to
amount to around 31 mmt, or a 2-3% yoy loss.