Industrial output down 4.5% yoy in September

Ukrainian industrial output dropped 4.5% yoy in September, for the second month in a row (in August industrial output was down 0.5% yoy), the State Statistics Committee reported on Friday. Andriy Parkhomenko: The slump in industrial output was primarily caused by a 17% yoy decline in metallurgy output, which accounts for about a quarter of total industrial output. Steel plants reined in production due to the drop in steel prices (-59% qoq in 3Q08). We believe that the decline in metallurgy will be temporary. In our view, prices will begin recovering by yearend and steel smelters will revive production, which will in turn around the deceleration in industrial output.