Metinvest 2011 output updated

Metinvest released its updated 2011 production figures in February, showing that steel production increased 3.9% on the previous year to 14.4 m tonnes in 2011, though the fourth quarter was down -6.7% compared to the fourth quarter the previous year. Coking coal mining output is up 12.3% to 11.3 m tonnes, and iron ore production was flat at 35.7 m tonnes of iron ore concentrate.

Roman Topolyuk, analyst at Phoenix Capital, was reported by Condorde Capital’s Ukraine Daily as describing Metinvest’s mostly flat operating performance in 2011 as being broadly expected by the market. A reduction in steel production in the fourth quarter of 2011 was in line with expectations due to market weakening, which it is believed will reverse in the second quarter of 2012, with iron ore output, the main contributor to EBITDA, remaining stable this year.