Metinvest iron ore concentrate output decreases 3.8% m/m in August

The attributable production of iron ore concentrate of
Metinvest’s (METINV) subsidiaries amounted to 2.6 mmt in August, or a 3.8% m/m
drop, according to Concorde Capital’s analysis of separate news by
Interfax-Ukraine. The holding’s pellet output was 859 kt in August, a 1.4% m/m
decline.

The output fall was the result of reduced production
at Inhulets Iron Ore (which fell 9% m/m to 836 kt), while output at other
subsidiaries (Northern, Central and Southern iron ore plants) fell by just 1%
m/m, on average.

In 8M18, Metinvest’s attributable output of iron ore
concentrate dropped 8.3% yoy to 21.3 mmt.

Andriy Perederey: The main reason for Metinvest’s reduced iron ore output was an
insufficient supply of railcars in Kryviy Rih, according to industry experts.
The August drop in attributable iron ore output – coupled with higher attributable steel output – will decrease external sales of iron ore
products. We continue to expect Metinvest will produce about 32 mmt of
attributable iron ore in 2017, a 2.6% yoy decrease.