Metinvest steel output slid 7% m/m in May

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 23.2 kt per day (or 720 kt per month) in May, a 7.1% m/m
decrease, according to Concorde Capital’s analysis of separate news reports by
Interfax-Ukraine.

Ilyich Steel reported an 8.8% m/m loss in steel
production to 10.6 kt per day, while Azovstal’s output slid 5.6% m/m to 12.6 kt
per day in May. The holding’s hot iron output dropped 7.5% m/m to 24.2 kt per
day.

Ilyich Steel conducted repairs of one of its three
oxygen converters, mrpl.city, a local news site, reported on May 25 without
giving further details. Recall, Azovstal was expected to lower
its daily steel output 9% m/m in May due to a minor overhaul of
one of its two converters.

In 5M21, Metinvest’s steel output was 3.59 mmt (23.8
kt per day), or 11.5% more yoy.

Dmytro Khoroshun: Metinvest’s
steel output might rebound m/m in June after its May repairs.

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.