Metinvest iron ore concentrate output plunges 7% m/m in August

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.50 mmt (80.8 kt per day) in August, a 7.0% m/m plunge, according
to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine.
The holding’s pellet output was 875 kt in August, a 13.4% m/m loss.

Concentrate production at Inhulets Iron Ore dropped
8.3% m/m in August to a daily rate of 27.8 kt. Production at Northern Iron Ore
plunged 13.0% m/m to 24.8 kt per day. Production at Central Iron Ore improved
1.5% m/m to 12.8 kt per day, whereas output at Southern Iron Ore decreased 0.5%
m/m to 33.5 kt per day.

In 8M18, Metinvest’s attributable output of iron ore
concentrate rose 0.1% yoy to 21.3 mmt.

Dmytro Khoroshun: The m/m decrease in production volumes in August is worrying amid
ongoing reports on Ukraine’s problems with railroad logistics. We revise down
our forecasts and now expect Metinvest’s 2018 attributable iron ore concentrate
output to fall into a range from 31.0 mmt (a 3% yoy loss) to 32.2 mmt (a 1% yoy
gain).