Steel production at Ukraine’s largest producer
Metinvest (METINV) was 23.8 kt per day (or 690 kt per month) in February, a
3.1% m/m loss, according to Concorde Capital’s analysis of separate news
reports by Interfax-Ukraine.
Ilyich Steel reported a 0.7% m/m decrease in steel
production to 11.2 kt per day, while Azovstal’s output dropped 5.1% m/m to 12.6
kt per day in February. The holding’s hot iron output slid 1.0% m/m to 22.4 kt
per day.
In 2M20, Metinvest’s steel output was 1.45 mmt (24.2
kt per day), or 16.1% more yoy.
Dmytro Khoroshun: We
tentatively expect Metinvest’s steel production to remain flat yoy in 2020 at
7.6 mmt.
Notably, Metinvest’s steel production in 2M20, 24.2 kt
per day, is much stronger than our expectations.
At a recent conference call with investors, Metinvest
CEO said the holding expects a 5-8% yoy increase in steel production
in 2020 to 7.9-8.2 mmt (21.6-22.4 kt per day).
We maintain our negative view on METINV bonds.