Metinvest plant to lower iron output 26% m/m in April

Ilyich Steel, one of two steel making plants of
Ukraine’s largest producer Metinvest (METINV), will lower its hot iron output
to 332 kt in April, 26% lower m/m, according to Concorde Capital’s analysis of
a news report by Metal Expert, an industry consultancy. Ilyich Steel’s output
of merchant pig iron will drop to 34 kt in April, a 74% m/m plunge.

The output drop will be due to the repairs of blast
furnace No. 5 with the capacity of 1.4 mmt per year, Metal Expert said, adding
that the works started on April 1 and will last for 43 days.

Dmytro Khoroshun: Metinvest’s
daily steel output might jump 14-19% m/m in April to 24-25 kt, we continue to expect.

The planned blast furnace repairs at Ilyich Steel will
mostly affect its merchant pig iron output and should leave enough hot iron as
not to influence the plant’s crude steel production volumes in either April or
May, we estimate.

We maintain our neutral view on METINV bonds.