Metinvest steel output dropped 16% m/m in March

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 21.0 kt per day (or 650 kt per month) in March, a 15.5%
m/m decrease, according to Concorde Capital’s analysis of separate news reports
by Interfax-Ukraine.

Ilyich Steel reported a 1.7% m/m loss in steel
production to 11.9 kt per day, while Azovstal’s output dropped 28.8% m/m to 9.0
kt per day in March. The holding’s hot iron output decreased 10.9% m/m to 22.9
kt per day.

In 1Q21, Metinvest’s steel output was 2.13 mmt (23.7
kt per day), or 1.8% less yoy.

Dmytro Khoroshun: Metinvest’s
will boost its daily steel production rates to at least 23-24 kt in 2Q21 in
order to make the most of the period of high prices at the global markets, we
expect.

The March drop in steel production was expected due to repairs at
Azovstal.

We maintain our neutral view on METINV bonds.