Metinvest iron ore concentrate output rises 1.2% in February

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.58 mmt (92.2 kt per day) in February, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 1.2%
m/m gain on a daily average basis. The holding’s pellet output was 907 kt in
January, a 5.5% m/m decrease on a daily average basis.

Concentrate production at Inhulets Iron Ore slid 0.7%
m/m in January to a daily rate of 30.6 kt. Production at Northern Iron Ore
gained 4.9% m/m to 33.8 kt per day. Production at Central Iron Ore dropped 1.1%
m/m to 11.7 kt per day, whereas output at Southern Iron Ore lost 1.0% m/m to
35.2 kt per day.

In 2M19, Metinvest’s attributable output of iron ore
concentrate rose 2.3% yoy to 5.41 mmt.

Dmytro Khoroshun: We expect Metinvest’s 2019 attributable iron ore concentrate output to
at least stay flat yoy, but possibly surge by several million tons, because of
the recent Vale mine disaster in Brazil. Notably, Metinvest’s daily production
rates in January (91.2 kt) and February (92.2 kt) were higher than the 90.9 kt
highest monthly value during 2017-2018, and 5-6% higher than the 2018 average
of 86.6 kt.