Metinvest steel output dropped 7% m/m in September

Steel production at the two Mariupol plants of
Ukraine’s largest producer Metinvest (METINV) was 22.8 kt per day (685 kt per
month) in September, a 6.9% m/m decrease, according to Concorde Capital’s
analysis of separate news reports by Interfax-Ukraine.

Ilyich Steel reported a 3.6% m/m drop in steel
production to 11.7 kt per day, while Azovstal’s output lost 10.1% m/m to 11.2
kt per day in September. The holding’s hot iron output decreased 4.5% m/m to
24.3 kt per day.

In 9M21, Metinvest’s steel output at its two Mariupol
plants was 6.55 mmt (24.0 kt per day), or 6.3% more yoy.

Steel production at Dniprovskyy Steel assets, which
Metinvest might start consolidating from the beginning of August, was 5.7 kt
per day (170 kt per month) in September, a 14.3% m/m decrease. Combining the
Dniprovskyy Steel assets with the two Mariupol plants, Metinvest’s steel
production was 6.93 mmt (25.4 kt per day), or 12.5% more yoy in 9M21.

Dmytro Khoroshun: September’s
drop in steel production was expected because of repairs at
Azovstal.

Metinvest will continue to produce steel at daily
rates of at least 23-24 kt at its two Mariupol plants and at about 7 kt at
Dniprovskyy Steel in the coming months, in order to make the most of the period
of high prices at the global markets, we expect.

We maintain our neutral view on METINV bonds.