Industrial production growth accelerates to 10.2% y-o-y in September

Industrial production grew 10.2% y-o-y in September in real terms (+10.8% y-o-y in 9M10) vs. +9.2% y-o-y in August, according to State Statistics Committee of Ukraine. Mykyta Mykhaylychenko: The acceleration was driven by metallurgy growth by 14% y-o-y after a decline in annual terms in July-August. The increase also came on the back of both an actual production increase from July (+7.1%) as well as low comparison base from September 2009. As average export steel prices remained stable for the last two months reflecting demand stabilization, we expect steel production to stay at approximately current levels, implying up to 5% annual growth in the months ahead. We expect total industrial production to grow by 7%-8% in 2010 after a 21.9% decline in 2009.