Metinvest steel output drops 15% m/m in October

Steel production at Ukraine’s largest producer Metinvest
(METINV) was 20.2 kt per day (or 625 kt per month) in October, a 14.8% m/m
decrease, according to Concorde Capital’s analysis of separate news reports by
Interfax-Ukraine.

Ilyich Steel reported a 4.5% m/m loss in steel
production to 11.8 kt per day, while Azovstal’s output plunged 26.0% m/m to 8.4
kt per day in October. The holding’s hot iron output dropped 5.8% m/m to 22.7
kt per day.

In 10M20, Metinvest’s steel output was 6.79 mmt (22.3
kt per day), or 4.6% more yoy.

Dmytro Khoroshun: The 15% m/m
drop in Metinvest’s steel production was in line with our expectations and was
caused by the repairs at Azovstal. We expect Metinvest will complete the
repairs in November and will boost its steel output to 23-24 kt per day in
November-December, or 15-20% more than in October.

We maintain our neutral view on METINV bonds.