Metinvest steel output rose 1% m/m in August

Steel production at the two Mariupol plants of
Ukraine’s largest producer Metinvest (METINV) was 24.5 kt per day (760 kt per
month) in August, a 0.7% m/m increase, according to Concorde Capital’s analysis
of separate news reports by Interfax-Ukraine.

Ilyich Steel reported a 2.7% m/m rise in steel
production to 12.1 kt per day, while Azovstal’s output slid 1.3% m/m to 12.4 kt
per day in August. The holding’s hot iron output lost 1.9% m/m to 25.5 kt per
day.

In 8M21, Metinvest’s steel output at its two Mariupol
plants was 5.85 mmt (24.1 kt per day), or 7.3% more yoy.

Steel production at Dniprovskyy Steel assets, which
Metinvest might start consolidating from the beginning of August, was 6.6 kt
per day (205 kt per month) in August, a 6.8% m/m decrease. Combining the
Dniprovskyy Steel assets with the two Mariupol plants, Metinvest’s steel
production was 6.06 mmt (24.9 kt per day), or 11.2% more yoy in 8M21.

Dmytro Khoroshun: 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.