Metinvest steel output increases 3% m/m in August

Steel production at Ukraine’s largest producer,
Metinvest (METINV), was 19.6 kt per day (or 608 kt per month) in August, a 2.9%
m/m increase in average daily terms, 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. (Production at Metinvest’s
Yenakiyeve Steel was halted in February 2017). No attributable portion of
Zaporizhstal’s (ZPST UK) result is included.

Ilyich Steel reported a 4.2% m/m drop in steel
production to 8.8 kt per day, while Azovstal output jumped 9.4% m/m to 10.8 kt
per day.

The holding’s hot iron output decreased 2.0% m/m to
21.6 kt per day in August.

During 8M18, Metinvest’s steel output was 4.98 mmt, or
4.0% less yoy. Excluding Yenakiyeve Steel, which Metinvest does not control
anymore, the holding’s output rose 2.8% yoy in 8M18.

Dmytro Khoroshun: In
September, Azovstal might stop its oxygen converter No. 1 for planned
maintenance, which will result in a steel output decrease of about 25% m/m to
15 kt per day, we calculate.

We expect Metinvest’s 2018 steel output at about
7.3-7.5 mmt, or 3-5% less yoy.