Metinvest boosts attributable steel output 3% yoy in May, up 7% m/m
6 June 2016
Ukraine’s largest steelmaker Metinvest (METINV) boosted its attributable steel production by 3% yoy in May to 988 kt, mostly driven by improved operating performance at steel maker Azovstal (+15% yoy to 358 kt) and Yenakiyeve Steel (+7% yoy to 197 kt). The results were offset by a 10% yoy decrease at Ilyich Steel to 250 kt. The figures were derived from Concorde Capital’s analysis of separate reports published today by Interfax-Ukraine.
In 5M16, Metinvest’s attributable steel production grew 11% yoy to 4.4 mmt, we estimate.
Roman Topolyuk: Metinvest continues to recover its steel production, supported by absence of active military actions in Donbas and global steel market improvements since the beginning of the year. We are keeping our 2016 projection of Metinvest attributable steel production unchanged at 10.4 mmt in 2016 (+7% yoy). Global steel prices fell 9-26% between their peak in end-April and early June. But even having accounted for that correction, we see annual average flat steel product prices in 2016 by 2-9% higher than our initial forecast in April, and average annual long steel prices in line with that forecast. We affirm our positive view on Metinvest’s Eurobonds.
