Metinvest iron ore concentrate output drops 6% m/m in September

The attributable production of iron ore concentrate of
Metinvest’s (METINV) subsidiaries amounted to 2.45 mmt in September, according
to Concorde Capital’s analysis of separate news by Interfax-Ukraine. This is a
9.0% m/m drop, or 5.9% m/m drop on daily average basis. The holding’s pellet
output was 952 kt in September, a 10.8% m/m increase (up 14.5% m/m on daily
average basis).

For the second month in a row, an important factor
behind the output drop was decreasing production at Inhulets Iron Ore, whose
daily production fell 13.7% m/m to 23.3 kt per day. Production at Northern Iron
Ore dropped 5.3% m/m to 30.2 kt per day. Production at Central Iron Ore grew
1.7% m/m to 12.8 kt per day, whereas output at Southern Iron Ore was in line
with the previous month at 33.4 kt per day.

In 9M17, Metinvest’s attributable output of iron ore
concentrate dropped 7.7% yoy to 23.7 mmt.

Dmytro Khoroshun: Ukraine’s
mining industry continues to experience problems with railcar supply, which
likely contributed to Metinvest’s falling iron ore production volumes.
Reportedly, the situation with Ukrzaliznytsia’s railcar supply improved
somewhat in September, but deteriorated in early October. The September drop in
Metinvest’s attributable iron ore output – coupled with a much smaller m/m drop
in attributable daily steel output – will reduce external sales of iron ore
products.