Metinvest iron ore concentrate output rose 6% in 7M21

The attributable production of iron ore concentrate at
Metinvest (METINV), Ukraine’s largest steel producer, amounted to 3.24 mmt
(104.4 kt per day) in July, according to Concorde Capital’s analysis of
separate news reports by Interfax-Ukraine. This is a 1.1% m/m drop on a daily
average basis. The holding’s pellet output was 895 kt in July, an 8.3% m/m gain
on a daily average basis.

Concentrate production at Inhulets Iron Ore slid 2.3%
m/m in July to a daily rate of 35.8 kt. Production at Northern Iron Ore lost
3.6% m/m to 37.3 kt per day. Production at Central Iron Ore inched up 1.6% m/m
to 13.5 kt per day, whereas output at Southern Iron Ore added 5.6% m/m to 38.7
kt per day.

In 7M21, Metinvest’s attributable output of iron ore
concentrate rose 5.7% yoy to 21.75 mmt, or 102.6 kt per day, while its pellet
production gained 20.4% yoy to 5.38 mmt.

Dmytro Khoroshun: Metinvest will likely maintain elevated iron ore production rates in
the coming months, as the iron ore prices remain high globally even after their
recent drops. Namely, we expect the holding to produce iron ore concentrate at
daily attributable rates above the 2020 average of 96.8 kt, and possibly above
100 kt.