Metinvest iron ore concentrate output rises 4% in 1Q19
The attributable production of iron ore concentrate at the subsidiaries of Metinvest (METINV), Ukraine’s largest steel producer, amounted to 2.88 mmt (92.9 kt per day) in March, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 0.7% m/m gain on a daily average basis. The holding’s pellet output was 945 kt in March, a 5.9% m/m decrease on a daily average basis.
Concentrate production at Inhulets Iron Ore gained 0.8% m/m in March to a daily rate of 30.9 kt. Production at Northern Iron Ore inched up 0.3% m/m to 33.9 kt per day. Production at Central Iron Ore rose 1.6% m/m to 11.9 kt per day, whereas output at Southern Iron Ore climbed 0.5% m/m to 35.4 kt per day.
In 1Q19, Metinvest’s attributable output of iron ore concentrate rose 3.9% yoy to 8.29 mmt.
Dmytro Khoroshun: We expect Metinvest’s 2019 attributable iron ore concentrate output to at least stay flat yoy, but possibly surge by several million tons, because of the recent Vale mine disaster in Brazil. The recent management guidance for Metinvest’s subsidiaries (excluding Southern Iron Ore) is for a 4-5% yoy increase, or by 1.2-1.3 mmt.