Metinvest iron ore concentrate output drops 5% m/m in May

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.67 mmt (86.3 kt per day) in May, according to Concorde Capital’s
analysis of separate news reports by Interfax-Ukraine. This is a 1.8% m/m
decrease, or a 5.0% m/m slide on a daily average basis. The holding’s pellet
output was 950 kt in May, a 0.8% m/m loss (or a 4.0% m/m decrease on a daily
average basis).

Concentrate production at Inhulets Iron Ore fell 0.6%
m/m in May to a daily rate of 31.1 kt. Production at Northern Iron Ore lost
3.4% m/m to 32.3 kt per day. Production at Central Iron Ore rose 1.2% m/m to
11.0 kt per day, whereas output at Southern Iron Ore plunged 22.0% m/m to 26.0
kt per day.

In 5M18, Metinvest’s attributable output of iron ore
concentrate rose 0.7% yoy to 13.38 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.