Metinvest steel output dropped 7% m/m in October

Steel production at Ukraine’s largest producer
Metinvest (METINV) was 26.5 kt per day (820 kt per month) in October, a 7.2%
m/m decrease, according to Concorde Capital’s analysis of separate news reports
by Interfax-Ukraine.

Ilyich Steel reported a 0.5% m/m drop in steel
production to 11.6 kt per day, while Azovstal’s output plunged 17.7% m/m to 9.2
kt per day and production at Dniprovskyy Coke slid 0.4% m/m to 5.6 kt per day
in October.

The holding’s hot iron output lost 12.0% m/m to 25.8
kt per day in October.

In 10M21, Metinvest’s steel output was 7.74 mmt (25.5
kt per day), or 14.2% more yoy.

Dmytro Khoroshun: Steel
production volumes at Metinvest will rebound to at least 29-30 kt per day in
the coming months.

We expect this because Metinvest’s problems with coal
supplies should abate, in part due to the recent rebound in production volumesat Pokrovske Coal.

October’s drop in hot iron and steel production at
Azovstal was expected because of coke and coking coal deficit.

We maintain our neutral view on METINV bonds.