Metinvest iron ore concentrate output rises 5.5% in 2019

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer, amounted
to 2.78 mmt (89.7 kt per day) in December, according to Concorde Capital’s
analysis of separate news reports by Interfax-Ukraine. This is a 2.4% m/m loss
on a daily average basis. The holding’s pellet output was 624 kt in December, a
16.0% m/m drop on a daily average basis.

Concentrate production at Inhulets Iron Ore decreased
3.1% m/m in December to a daily rate of 29.9 kt. Production at Northern Iron
Ore dropped 2.7% m/m to 32.9 kt per day. Production at Central Iron Ore slid
0.7% m/m to 12.6 kt per day, whereas output at Southern Iron Ore lost 1.6% m/m
to 31.1 kt per day.

In 2019, Metinvest’s attributable output of iron ore
concentrate rose 5.5% yoy to 33.36 mmt, or 91.4 kt per day.

Dmytro Khoroshun: We tentatively expect Metinvest to produce (including the attributable
share of Southern Iron Ore volume) 33.4 mmt of iron ore concentrate in 2020,
same as in 2019. However, if the situation at the iron ore and steel markets
deteriorates, Metinvest’s iron ore production in 2020 might drop up to 10% yoy
to 30 mmt.