Metinvest steel prices rose last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rose during
Oct. 8-15, according to Metal Expert, an industry consultancy.

 

Billet prices skyrocketed 8% w/w to USD 655/t on Oct.
15, 11% below their 2Q21 high of USD 735/t on May 14.

 

Slab prices soared 5% w/w to USD 700/t on Oct. 15, 26%
below their 2Q21 high of USD 950/t on May 28.

 

HRC added 2% w/w to USD 820/t on Oct. 15, 25% below
their 2Q21 high of USD 1,095/t on May 21.

 

Higher scrap prices and energy issues in Turkey drove
the prices higher, Metal Expert said.

 

Metal Expert did not provide an update for pig iron
prices (Metal Expert’s FOB Black Sea assessment for a group of countries that
includes Ukraine), which stood at USD 498/t on Sept. 24, 22% below their 2Q21
high of USD 635/t on June 18.

 

Dmytro Khoroshun: Global
energy crisis might add volatility to steel prices worldwide this winter.

 

Metinvest’s monthly EBITDA will likely amount to at
least USD 500-700 mln in 3Q21 but should drop in 4Q21 because of the recent
drops in steel and iron ore prices.

 

We maintain our neutral view on METINV bonds.