Metinvest steel prices dropped last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, dropped
again during Dec. 17 – 24, according to Metal Expert, an industry consultancy.

 

Pig iron prices (Metal Expert’s FOB Black Sea
assessment for a group of countries that includes Ukraine) were unchanged w/w
at USD 503/t on Dec. 24, 21% below their 2Q21 high of USD 635/t on June 18.

 

Billet prices slid 0.4% w/w to USD 588/t on Dec. 24,
20% below their 2Q21 high of USD 735/t on May 14.

 

Slab prices lost 1% w/w to USD 620/t on Dec. 24, 35%
below their 2Q21 high of USD 950/t on May 28.

 

HRC prices dropped 2% w/w to USD 775/t on Dec. 24, 29%
below their 2Q21 high of USD 1,095/t on May 21.

 

Dmytro Khoroshun: Ukraine FOB
steel prices will drop further in the next few months, we expect.

 

Potential stimulus moves from China might support the
markets if directed in part toward steel-consuming industries and if net steel
exports from China do not increase.

 

Metinvest’s monthly EBITDA will likely amount to USD
350-550 mln in 4Q21 because of the recent drops in steel and iron ore prices.

 

We maintain our neutral view on METINV bonds.