Metinvest steel output slid 7% m/m in May
Steel production at Ukraine’s largest producer Metinvest (METINV) was 23.2 kt per day (or 720 kt per month) in May, a 7.1% m/m decrease, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine.
Ilyich Steel reported an 8.8% m/m loss in steel production to 10.6 kt per day, while Azovstal’s output slid 5.6% m/m to 12.6 kt per day in May. The holding's hot iron output dropped 7.5% m/m to 24.2 kt per day.
Ilyich Steel conducted repairs of one of its three oxygen converters, mrpl.city, a local news site, reported on May 25 without giving further details. Recall, Azovstal was expected to lower its daily steel output 9% m/m in May due to a minor overhaul of one of its two converters.
In 5M21, Metinvest's steel output was 3.59 mmt (23.8 kt per day), or 11.5% more yoy.
Dmytro Khoroshun: Metinvest’s steel output might rebound m/m in June after its May repairs.
The holding will continue to produce steel at rates of at least 23-24 kt per day in the coming months in order to make the most of the period of high prices at the global markets, we expect.
We maintain our neutral view on METINV bonds.