Metinvest steel output rises 11% m/m in March

Steel production at Ukraine’s largest producer,
Metinvest (METINV), was 20.8 kt per day (or 645 kt per month) in March, an 11.0%
m/m increase 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 2.0% m/m fall in steel
production to 8.6 kt per day, while Azovstal showed a 12.2% m/m jump to 12.2 kt
per day.

The holding’s hot iron output declined 1.4% m/m to
23.0 kt per day in March.

During 1Q18, Metinvest’s steel output was 1.81 mmt, or
15.9% less yoy. Excluding Yenakiyeve Steel, which Metinvest does not control
anymore, the holding’s output rose 0.2% yoy in 1Q18.

Dmytro Khoroshun: The m/m jump in Metinvest’s steel production in March is due to
maintenance work conducted at Azovstal in February. We expect Metinvest’s 2018
steel output at about 7.3 mmt, or 4-5% less yoy.