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. 10 – 17, 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) dropped 2% w/w to
USD 503/t on Dec. 17, 21% below their 2Q21 high of USD 635/t on June 18.

 

Billet prices slid 1% w/w to USD 590/t on Dec. 17, 20%
below their 2Q21 high of USD 735/t on May 14.

 

HRC prices lost 1% w/w t0 USD 793/t on Dec. 17, 28%
below their 2Q21 high of USD 1,095/t on May 21.

 

Metal Expert did not provide an update for slab
prices, which stood at USD 625/t on Dec. 10, 34% below their 2Q21 high of USD
950/t on May 28.

 

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.