Metinvest iron ore concentrate output rises 5% in 8M20

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 3.10 mmt (100.0 kt per day) in August, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 4.3%
m/m loss on a daily average basis. The holding’s pellet output was 732 kt in
August, a 23.9% m/m jump on a daily average basis.

Concentrate production at Inhulets Iron Ore slid 5.4%
m/m in August to a daily rate of 34.2 kt. Production at Northern Iron Ore lost
7.4% m/m to 34.8 kt per day. Production at Central Iron Ore advanced 2.0% m/m
to 13.8 kt per day, whereas output at Southern Iron Ore slid 0.2% m/m to 37.4
kt per day.

In 8M20, Metinvest’s attributable output of iron ore
concentrate rose 5.1% yoy to 23.62 mmt, or 96.8 kt per day.

Dmytro Khoroshun: Metinvest’s
August concentrate daily production rate remains high (9% above the 2019 daily
average), as the holding is making the most of the period of strong iron ore
prices at the global markets, which is positive.

We are again raising our expectations for
Metinvest’s 2020 iron ore concentrate production to 34.8-35.6 mmt (95-97 kt per
day), or 4-7% more yoy (including the attributable share of Southern Iron Ore
volume).

We maintain our neutral
view on METINV bonds.