Metinvest plant to lower steel output 9% m/m in May

Azovstal, one of two steel making plants of Ukraine’s
largest producer Metinvest (METINV), will lower its steel output to 12.2 kt per
day (377 kt per month) in May, a 9% m/m drop, according to Concorde Capital’s
analysis of a news report by Metal Expert, an industry consultancy.

The output drop will be due to a minor overhaul of one
of Azovstal’s two oxygen converters that should last 7-10 days, Metal Expert
said.

Dmytro Khoroshun: Metinvest’s
daily steel output might drop 5-8% m/m in May to 23.0-23.8 kt because of
Azovstal’s repairs, we expect.

We maintain our neutral view on METINV bonds.