Metinvest iron ore concentrate output dropped 3% m/m in October

The attributable production of iron ore concentrate at
Metinvest (METINV), Ukraine’s largest steel producer, amounted to 3.00 mmt
(96.7 kt per day) in October, according to Concorde Capital’s analysis of
separate news reports by Interfax-Ukraine. This is a 2.8% m/m drop on a daily
average basis. The holding’s pellet output was 410 kt in October, a 32.1% m/m
drop on a daily average basis.

Concentrate production at Inhulets Iron Ore dropped
3.4% m/m in October to a daily rate of 32.8 kt. Production at Northern Iron Ore
fell 12.0% m/m to 32.3 kt per day. Production at Central Iron Ore jumped 19.8%
m/m to 14.0 kt per day, whereas output at Southern Iron Ore added 2.9% m/m to
38.4 kt per day.

In 10M21, Metinvest’s attributable output of iron ore
concentrate rose 5.3% yoy to 30.97 mmt, or 101.9 kt per day, while its pellet
production gained 11.9% yoy to 7.07 mmt.

Dmytro Khoroshun: Metinvest’s
daily concentrate output should stabilize after having decreased m/m for the
last four months.

We continue to expect the holding to produce iron ore
concentrate at daily attributable rates above the 2020 average of 96.8 kt, and
possibly above 100 kt.

We maintain our neutral view on METINV bonds.