Metinvest steel output rises 10% m/m in August

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 25.2 kt per day (or 780 kt per month) in August, a 10.3%
m/m increase, according to Concorde Capital’s analysis of separate news reports
by Interfax-Ukraine.

Ilyich Steel reported a 5.7% m/m gain in steel
production to 11.9 kt per day, while Azovstal’s output advanced 14.8% m/m to
13.2 kt per day in August. The holding’s hot iron output increased 4.7% m/m to
26.0 kt per day.

In 8M20, Metinvest’s steel output was 5.45 mmt (22.4
kt per day), or 4.0% more yoy.

Dmytro Khoroshun: Metinvest’s
m/m gains in daily iron and steel production rates were above the 3%
increase we estimated from the dynamics in freight traffic data
for August.

We maintain our neutral view on METINV bonds.