Industrial production up a solid 10.2% y-o-y in October

Ukraine’s industrial production rose 10.2% y-o-y in October in real terms, the rate unchanged from September, according to the State Statistics Committee. In January-October, industrial output growth was 10.7% y-o-y. Mykyta Mykhaylychenko: The favorable industrial growth dynamic was derived from better than expected growth in metallurgy (+8.9% y-o-y in October), thanks to stable external demand for steel as well as from continuing acceleration of output growth in the chemical industry (to 21.8% y-o-y in October, from 20.8% y-o-y in September). As average export steel prices have remained stable recently, while domestic demand continues to improve, we see real industrial production growth at a healthy 9%-10% in 2010F (after -21.9% in 2009).