Output at Metinvest Mariupol-based plants rises 6% m/m in May
8 June 2017
The two Mariupol-based steel mills of Metinvest (METINV) produced 636 kt of crude steel in May, an increase of 5.8% m/m, according to data from Interfax-Ukraine. This implies their daily average output was 20.5 kt in May, or 2.4% m/m growth. Steel output at Azovstal (AZST UK) amounted to 11.6 kt per day (4% m/m growth) and output at Ilyich Steel (MMKI UK) was nearly flat at 8.45 kt per day in May (vs. 8.43 kt per day in April). In 5M17, Mariupol-based steel mills produced 3.04 mmt of crude steel (13% yoy growth).
Andriy Perederey: The holding’s Mariupol-based mills restored output in May after an April slump prompted by problems with the supply of coke and other raw materials. Also, the holding wants to partially compensate for the loss of Yenakiyeve Steel by boosting output at its Mariupol-based mills. We expect that Mariupol-based mills boost their output even more in the coming months. This expectation is supported by restored coal output by Avdiyivka Coke (AVDK UK), which got a new electricity line in May. All in all, we are keeping a positive view on Metinvest bonds, which are now trading at 92-93% of par.
