Metinvest attributable steel output decreases 0.6% in September
3 October 2017
Attributable steel production at Ukraine’s largest
producer Metinvest (METINV) was 26.3 kt per day (or 790 kt per month) in
September, a 0.6% m/m decrease in average daily terms, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. That result
includes Azovstal (AZST UK), Ilyich Steel (MMKI UK) and a 49.9% portion of
Zaporizhstal’s (ZPST UK) result (production at Metinvest’s Yenakiyeve Steel was
halted on Feb. 20).
The two Mariupol-based mills reduced their output by
1.5% m/m to 20.5 kt per day, including Ilyich Steel (1.2% m/m drop to 8.6 kt
per day) and Azovstal (1.6% decrease m/m to 11.9 kt per day). Zaporizhstal
output increased 2.6% m/m to 11.7 kt per day. Also, the holding boosted hot
iron output by 3.9% m/m to 29.3 kt per day in September.
In 9M17, Metinvest’s attributable steel output was 7.3
mmt, or 6.9% less yoy. Excluding Yenakiyeve Steel, which Metinvest does not
control any more, the holding’s output rose 9.0% yoy to 6.9 mmt in 9M17.
iron, which is among the best performing metallurgical commodities this year
(its price increased 23% YTD in September). We are keeping unchanged our
expectations that the holding will be able to reach our 2017 steel output
forecast (9.6 mmt, or 7% less yoy), as well as our forecast for the holding’s
full-year 2017 EBITDA at USD 1.75 bln. And we are keeping our neutral view on
METINV Eurobond as we see a high refinancing risk for the next twelve months.
