Metinvest iron ore concentrate output rises 6% in 9M20

The attributable production of iron ore concentrate at
the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer,
amounted to 2.84 mmt (94.8 kt per day) in September, according to Concorde
Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 5.2%
m/m loss on a daily average basis. The holding’s pellet output was 627 kt in
September, a 14.4% m/m drop on a daily average basis.

Concentrate production at Inhulets Iron Ore dropped
6.1% m/m in September to a daily rate of 32.1 kt. Production at Northern Iron
Ore lost 6.2% m/m to 32.7 kt per day. Production at Central Iron Ore retreated
3.3% m/m to 13.3 kt per day, whereas output at Southern Iron Ore fell 2.8% m/m
to 36.4 kt per day.

In 9M20, Metinvest’s attributable output of iron ore
concentrate rose 5.7% yoy to 26.46 mmt, or 96.6 kt per day.

Dmytro Khoroshun: The m/m
drop in the daily production rates in September might be related to workers in
China, Metinvest’s main iron ore customer at the moment, going on vacation for
the first eight days of October.

We maintain our expectations for Metinvest’s 2020 iron
ore concentrate production to be at 35-35.5 mmt (95-97 kt per day), or 4-6%
more yoy (including the attributable share of Southern Iron Ore volume).

We maintain our neutral view on METINV bonds.