Metinvest steel output to rise 10% m/m in November

Azovstal, one of the two steelmaking plants of
Ukraine’s largest producer Metinvest (METINV), will boost its steel production
to 10.5 kt per day (316 kt per month) in November, a 25% m/m jump, according to
a Nov. 12 report by Metal Expert, an industry consultancy.

The increase will be due to the completion of repairs
of oxygen converter No. 2, which started in mid-September and lasted for
approximately 45 days, Metal Expert said.

Dmytro Khoroshun: We estimate
steel production at Metinvest will increase 10% m/m to 22.3 kt per day in
November as a result of Azovstal completing its repairs.

We further expect Metinvest to boost its steel
production to 23-24 kt per day in December-January, based on Azovstal’s daily
production rates of 13.3 kt in June and 13.2 kt in August.

We maintain our neutral view on METINV bonds.