Metinvest steel output dropped 4% m/m in July

Steel production at Ukraine’s largest producer Metinvest
(METINV) was 24.4 kt per day (or 755 kt per month) in July, a 4.5% m/m
decrease, according to Concorde Capital’s analysis of separate news reports by
Interfax-Ukraine.

Ilyich Steel reported a 3.2% m/m drop in steel
production to 11.8 kt per day, while Azovstal’s output lost 5.6% m/m to 12.6 kt
per day in July. The holding’s hot iron output slid 5.0% m/m to 26.0 kt per
day.

In 7M21, Metinvest’s steel output was 5.11 mmt (24.1
kt per day), or 9.3% more yoy.

Dmytro Khoroshun: Metinvest
might boost its reported steel production by about 7 kt per day starting from
August due to its acquisition of Dniprovskyy Steel assets in
late July, we estimate.

Metinvest will continue to produce steel at rates of
at least 23-24 kt per day in the coming months at its two Mariupol plants,
Azovstal and Ilyich Steel, in order to make the most of the period of high
prices at the global markets, we expect.

We maintain our neutral view on METINV bonds.