Metinvest steel output rises 1.2% m/m in March

Steel production at Ukraine’s largest producer,
Metinvest (METINV), was 22.2 kt per day (or 689 kt per month) in March, a 1.2%
m/m increase, according to Concorde Capital’s analysis of separate news reports
by Interfax-Ukraine. That result includes Azovstal (AZST UK) and Ilyich Steel
(MMKI UK) figures.

Ilyich Steel reported a 3.5% m/m gain in steel
production to 10.9 kt per day, while Azovstal’s output slid 1.0% m/m to 11.4 kt
per day in March. The holding’s hot iron output rose 6.1% m/m to 22.3 kt per
day.

In 1Q19, Metinvest’s steel output was 1.94 mmt, or
7.4% more yoy.

Dmytro Khoroshun: As a result
of the recent upgrade of one of Ilyich Steel’s casting machines,
Metinvest demonstrated strong steel production volumes during 1Q19, averaging
21.5 kt per day. Using the same rate for the remainder of the current year, we
are cautiously upgrading our forecast for Metinvest’s 2019 steel production to 7.85
mmt, up 7% yoy, but still below management’s recent guidance for 2019 of 8.32 mmt
(up 14% yoy).