Metinvest steel output drops 7% m/m in September

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 22.1 kt per day (or 663 kt per month) in September, a
7.0% m/m loss, according to Concorde Capital’s analysis of separate news
reports by Interfax-Ukraine. That result includes Azovstal (AZST UK) and Ilyich
Steel (MMKI UK) figures.

Ilyich Steel reported an 8.2% m/m decrease in steel
production to 10.6 kt per day, while Azovstal’s output slid 5.9% m/m to 11.5 kt
per day in September. The holding’s hot iron output grew 5.2% m/m to 24.4 kt
per day.

In 9M19, Metinvest’s steel output was 5.91 mmt, or
5.7% more yoy.

Dmytro Khoroshun: We continue
expecting Metinvest’s 2019 steel production to amount to 7.9-8.1 mmt (or 8-11%
higher yoy) and maintain our bullish view on METINV bonds.