Metinvest attributable steel output rises 1.5% in November

2017/12/6 17:47:28

Analyst: “We are keeping unchanged our expectations that the holding will be able to reach our 2017 steel output forecast (9.7 mmt, or 7% less yoy), as well as our forecast for the holding’s full-year 2017 EBITDA at USD 1.75 bln. And we are keeping our neutral view on METINV Eurobonds.”

 


KYIV, Dec 6, 2017 - Attributable steel production at Ukraine’s largest producer Metinvest (METINV) was 26.4 kt per day (or 792 kt per month) in November, a 1.5% m/m improvement, according to Concorde Capital’s analysis of separate news reports by Interfax-Ukraine. That result includes Azovstal, Ilyich Steel and a 49.9% portion of Zaporizhstal’s result. (Production at Metinvest’s Yenakiyeve Steel was halted on Feb. 20.)

 

The two Mariupol-based mills boosted output by 0.5% m/m to 21.4 kt per day, including Ilyich Steel (6.1% m/m increase to 8.8 kt per day) and Azovstal (3.1% m/m decrease to 12.6 kt per day). Zaporizhstal output increased 6.2% m/m to 10.0 kt per day.

 

Also, the holding's hot iron output jumped 9.9% m/m to 30.3 kt per day in November.

 

In 11M17, Metinvest's attributable steel output was 8.86 mmt, or 6.8% less yoy. Excluding Yenakiyeve Steel, which Metinvest does not control anymore, the holding’s output rose 10.5% yoy to 8.52 mmt in 11M17.

 

Concorde analyst Dmytro Khoroshun added: “Metinvest's monthly attributable steel output was higher than our expectations. Especially interesting is the fact that Zaporizhstal's daily output increased m/m, while we expected flat output. Apparently, while Zaporizhstal’s rolling mill 1680 was idle during the first nine days of November, the plant continued producing steel ingots, a semi-finished product, without further processing them into rolled products. The semi-finished product stocks accumulated during November, enabling Zaporizhstal to increase shipments in December. They will rise 59% m/m to 293 kt, according to the Metal Expert consulting firm.

 

“Notably, Metinvest’s two Mariupol plants kept their output steady despite the Nov. 6-9 railway maintenance work on the Kamysh-Zarya-Volnovakha raw material supply route. Once Ukrzaliznytsya efficiently debottlenecks this route, which is in its plans for 2018, output at Azovstal and Ilyich Steel might increase.

 

“We are keeping unchanged our expectations that the holding will be able to reach our 2017 steel output forecast (9.7 mmt, or 7% less yoy), as well as our forecast for the holding’s full-year 2017 EBITDA at USD 1.75 bln. And we are keeping our neutral view on METINV Eurobonds.”

 

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For more information, link here: www.concorde.ua 

 

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