Metinvest steel output added 10% m/m in June

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 25.5 kt per day (or 765 kt per month) in June, a 9.8%
m/m increase, according to Concorde Capital’s analysis of separate news reports
by Interfax-Ukraine.

Ilyich Steel reported a 14.3% m/m jump in steel
production to 12.2 kt per day, while Azovstal’s output gained 6.0% m/m to 13.3
kt per day in June. The holding’s hot iron output jumped 13.0% m/m to 27.3 kt
per day.

In 1H21, Metinvest’s steel output was 4.36 mmt (24.1
kt per day), or 9.9% more yoy.

Dmytro Khoroshun: Metinvest’s
daily production rates for both steel and hot iron were the highest since at
least the beginning of 2016, which is positive.

The holding will continue to produce steel at rates of
at least 23-24 kt per day in the coming months in order to make the most of the
period of high prices at the global markets, we expect.

We maintain our neutral view on METINV bonds.