Metinvest iron ore concentrate output drops 3% m/m in June

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.61 mmt (87.0 kt per day) in June, according to Concorde Capital’s
analysis of separate news reports by Interfax-Ukraine. This is a 6.2% m/m
decrease, or a 3.1% m/m slide on a daily average basis. The holding’s pellet
output was 907 kt in June, a 4.5% m/m loss (or a 1.3% m/m decrease on a daily
average basis).

Concentrate production at Inhulets Iron Ore fell 3.6%
m/m in June to a daily rate of 30.0 kt. Production at Northern Iron Ore lost
7.0% m/m to 30.0 kt per day. Production at Central Iron Ore rose 5.9% m/m to
11.6 kt per day, whereas output at Southern Iron Ore decreased 0.2% m/m to 33.5
kt per day.

In 1H18, Metinvest’s attributable output of iron ore
concentrate rose 1.9% yoy to 16.10 mmt.

Dmytro Khoroshun: We expect
Metinvest’s 2018 attributable iron ore concentrate output to rise by up to 2%
yoy to 32.0-32.5 mmt.