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
during Aug. 27 – Sept. 3, according to Metal Expert, an industry consultancy.

 

Billet prices slid 1% w/w to USD 590/t on Sept. 3, 20%
below their 2Q21 high of USD 735/t on May 14.

 

Slab prices lost 2% w/w to USD 760/t on Sept. 3, 20%
below their 2Q21 high of USD 950/t on May 28.

 

HRC prices dropped 1% w/w to USD 868/t on Sept. 3, 21%
below their 2Q21 high of USD 1,095/t on May 21.

 

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 500/t on Aug. 27, 21% below their 2Q21
high of USD 635/t on June 18.

 

The prices provided by Metal Expert are sophisticated
estimates, but they are not necessarily the same as the prices realized by
Metinvest for its specific products.

 

Dmytro Khoroshun: Ukraine FOB
steel prices might stabilize in the short term following steel prices in China,
but we do not exclude a further drop later in 2021.

 

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.