Metinvest iron ore concentrate output rose 6% in 9M21

The attributable production of iron ore concentrate at
Metinvest (METINV), Ukraine’s largest steel producer, amounted to 2.98 mmt
(99.5 kt per day) in September, according to Concorde Capital’s analysis of
separate news reports by Interfax-Ukraine. This is a 3.1% m/m drop on a daily
average basis. The holding’s pellet output was 585 kt in September, a 13.6% m/m
drop on a daily average basis.

Concentrate production at Inhulets Iron Ore slid 0.6%
m/m in September to a daily rate of 34.0 kt. Production at Northern Iron Ore
fell 0.3% m/m to 36.7 kt per day. Production at Central Iron Ore dropped 15.9%
m/m to 11.7 kt per day, whereas output at Southern Iron Ore lost 3.6% m/m to
37.3 kt per day.

In 9M21, Metinvest’s attributable output of iron ore
concentrate rose 5.7% yoy to 27.97 mmt, or 102.5 kt per day, while its pellet
production gained 14.7% yoy to 6.67 mmt.

Dmytro Khoroshun: Metinvest
might decide to lower its iron ore output to possibly conduct repairs because
of the recent plunge of the iron ore prices at the global markets. Also,
Metinvest’s internal processing of iron ore might drop because of the possible problems with coking coal supply.

For now, we continue to 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.

We maintain our neutral view on METINV bonds.