Metinvest iron ore concentrate output rises 4% in 1Q19

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer, amounted
to 2.88 mmt (92.9 kt per day) in March, according to Concorde Capital’s
analysis of separate news reports by Interfax-Ukraine. This is a 0.7% m/m gain
on a daily average basis. The holding’s pellet output was 945 kt in March, a
5.9% m/m decrease on a daily average basis.

Concentrate production at Inhulets Iron Ore gained
0.8% m/m in March to a daily rate of 30.9 kt. Production at Northern Iron Ore
inched up 0.3% m/m to 33.9 kt per day. Production at Central Iron Ore rose 1.6%
m/m to 11.9 kt per day, whereas output at Southern Iron Ore climbed 0.5% m/m to
35.4 kt per day.

In 1Q19, Metinvest’s attributable output of iron ore
concentrate rose 3.9% yoy to 8.29 mmt.

Dmytro Khoroshun: We expect Metinvest’s 2019 attributable iron ore concentrate output to
at least stay flat yoy, but possibly surge by several million tons, because of
the recent Vale mine disaster in Brazil. The recent management guidance for Metinvest’s subsidiaries (excluding Southern
Iron Ore) is for a 4-5% yoy increase, or by 1.2-1.3 mmt.