Metinvest attributable steel output rises 16% m/m in August

Attributable steel production at Ukraine’s largest
producer Metinvest (METINV) was 26.5 kt per day (or 821 kt total) in August, a
15.9% increase m/m, 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 Yenakiyeve Steel was halted on Feb. 20.

The two Mariupol-based mills boosted output by 5.8%
m/m to 645 kt in August. This includes Ilyich Steel (flat output m/m) and
Azovstal (38.5% increase m/m to 374 kt per month). Zaporizhstal produced 353 kt
of steel per month, which is a 5.8% increase m/m.

In 8M17, Metinvest’s attributable steel output was
6.47 mmt, or 6.9% less yoy. Excluding Yenakiyeve Steel, which Metinvest does
not control any more, the holding’s output increased 8.8% yoy to 6.13 mmt in
8M17.

Andriy Perederey: The August
output results support our expectations about improvementsin its financial indicators in August. Also, we expect that the holding will be
able to reach our 2017 steel output forecast (9.6 mmt, or 7% less yoy).