Metinvest iron ore concentrate output drops 2% m/m in December

Metinvest iron ore concentrate output drops 2% m/m in December



23 января 2018 года
Конкорд Капитал

The attributable production of iron ore concentrate of Metinvest’s (METINV) subsidiaries amounted to 2.74 mmt in December, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. This is a 0.8% m/m increase, or a 2.4% m/m drop on a daily average basis. The holding’s pellet output was 954 kt in December, a 50.0% m/m jump (or a 45.2% m/m rise on a daily average basis).



Production at Inhulets Iron Ore rose in December to the daily rate of 29.4 kt per day, or a 3.2% m/m rise. Production at Northern Iron Ore slid 0.2% m/m to 32.6 kt per day. Production at Central Iron Ore decreased 0.2% m/m to 12.8 kt per day, whereas output at Southern Iron Ore declined 18.4% m/m to 29.3 kt per day.



In 2017, Metinvest’s attributable output of iron ore concentrate dropped 4.8% yoy to 31.9 mmt.



Dmytro Khoroshun: We expect Metinvest’s 2018 attributable concentrate output to rise about 0.4% yoy to 32.0 mmt, approximately. However, if Ukrzaliznytsia, Ukraine’s state railway company, enhances the throughput of the Kamysh-Zarya-Volnovakha raw material supply route, which currently limits the utilization rate of Metinvest’s two Mariupol plants to 70-80% (http://concorde.ua/rs/daily/item_72484/), then Metinvest’s mining operations will boost intra-group sales by an additional 0.5 mmt (about 2% of the yearly production volume) of iron ore products, which might result in a commensurate increase in yearly production volumes.



We are keeping our neutral view on METINV Eurobonds.

Источник: Конкорд Капитал

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