Metinvest iron ore concentrate output rises 7% in 1H21

The attributable production of iron ore concentrate at
Metinvest (METINV), Ukraine’s largest steel producer, amounted to 3.16 mmt
(105.5 kt per day) in June, according to Concorde Capital’s analysis of
separate news reports by Interfax-Ukraine. This is a 1.5% m/m gain on a daily
average basis. The holding’s pellet output was 800 kt in June, a 25.1% m/m jump
on a daily average basis.

Concentrate production at Inhulets Iron Ore rose 3.3%
m/m in June to a daily rate of 36.7 kt. Production at Northern Iron Ore was
flat m/m at 38.7 kt per day. Production at Central Iron Ore retreated 2.7% m/m
to 13.3 kt per day, whereas output at Southern Iron Ore added 5.0% m/m to 36.7
kt per day.

In 1H21, Metinvest’s attributable output of iron ore
concentrate rose 6.9% yoy to 18.54 mmt, or 102.4 kt per day, while its pellet
production gained 16.5% yoy to 4.52 mmt.

Dmytro Khoroshun: Metinvest made the most of the favorable markets by producing iron ore
at high rates in 1H21, 6% above the 2020 attributable concentrate daily
production rate of 96.8 kt, which is positive.

We maintain our neutral view on METINV bonds.