Metinvest steel output rises 10.5% m/m in November

Steel production at Ukraine’s largest producer, Metinvest
(METINV), was 18.5 kt per day (or 555 kt per month) in November, a 10.5% m/m
jump in average daily terms, 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. (Production at Metinvest’s Yenakiyeve
Steel was halted in February 2017). No attributable portion of Zaporizhstal’s
(ZPST UK) result is included.

Ilyich Steel reported a 0.2% m/m drop in steel
production to 8.5 kt per day, while Azovstal’s output gained 21.6% m/m to 10.0
kt per day.

The holding’s hot iron output gained 1.9% m/m to 20.7
kt per day in November.

During 11M18, Metinvest’s steel output was 6.66 mmt,
or 5.3% less yoy. Excluding Yenakiyeve Steel, which Metinvest does not control
anymore, the holding’s output slid 1.5% yoy in 11M18.

Dmytro Khoroshun: The
November gain in steel production at Azovstal due to the completion (about Nov.
15) of the planned repairs of oxygen converter No. 1 is in line with our expectations.

We expect Metinvest’s 2018 steel output at about
7.3 mmt, or 4-5% less yoy.