Metinvest plant to lower steel output 27% m/m in March

Azovstal, one of two steel making plants of Ukraine’s
largest producer Metinvest (METINV), will lower its steel output to 9.3 kt per
day (287 kt per month) in March, a 27% m/m decrease, according to Concorde
Capital’s analysis of a news report by Metal Expert, an industry consultancy.

The output drop will be due to a major 20-day overhaul
of one of Azovstal’s two oxygen converters, Metal Expert said, adding that the
overhaul started on March 2.

Recall, in March Azovstal is also conducting short-term repairs
of three of its blast furnaces.

Dmytro Khoroshun: Metinvest’s
daily steel output might drop 10-15% to 21-22 kt in March because of Azovstal’s
repairs, we continue to expect.

Metinvest will restore its daily steel output rates to
at least 23-24 kt in April-May in order to make the most of the high prices
period at the global markets, we presume.

We maintain our neutral view on METINV bonds.