Metinvest iron ore concentrate output rose 5% in 8M21

The attributable production of iron ore concentrate at
Metinvest (METINV), Ukraine’s largest steel producer, amounted to 3.18 mmt
(102.6 kt per day) in August, according to Concorde Capital’s analysis of
separate news reports by Interfax-Ukraine. This is a 1.7% m/m drop on a daily
average basis. The holding’s pellet output was 700 kt in August, a 21.8% m/m
drop on a daily average basis.

Concentrate production at Inhulets Iron Ore dropped
4.5% m/m in August to a daily rate of 34.2 kt. Production at Northern Iron Ore
slid 1.3% m/m to 36.8 kt per day. Production at Central Iron Ore added 2.4% m/m
to 13.9 kt per day, whereas output at Southern Iron Ore was flat m/m at 38.7 kt
per day.

In 8M21, Metinvest’s attributable output of iron ore
concentrate rose 5.5% yoy to 24.91 mmt, or 102.5 kt per day, while its pellet
production gained 17.8% yoy to 6.10 mmt.

Dmytro Khoroshun: Metinvest
might decide to lower its iron ore output to possibly conduct repairs because
iron ore prices at world markets have been plunging since late July.

For now, we continue to expect the holding to produce
iron ore concentrate at daily attributable rates above the 2020 average of 96.8
kt, and possibly above 100 kt.

We maintain our neutral view on METINV bonds.