18 March 2021
Azovstal, one of two steel making plants of Ukraine’s
largest producer Metinvest (METINV), will lower its steel output to 9.3 kt per
day (287 kt per month) in March, a 27% m/m decrease, according to Concorde
Capital’s analysis of a news report by Metal Expert, an industry consultancy.
The output drop will be due to a major 20-day overhaul
of one of Azovstal’s two oxygen converters, Metal Expert said, adding that the
overhaul started on March 2.
Recall, in March Azovstal is also conducting short-term repairs
of three of its blast furnaces.
Dmytro Khoroshun: Metinvest’s
daily steel output might drop 10-15% to 21-22 kt in March because of Azovstal’s
repairs, we continue to expect.
Metinvest will restore its daily steel output rates to
at least 23-24 kt in April-May in order to make the most of the high prices
period at the global markets, we presume.
We maintain our neutral view on METINV bonds.