Metinvest steel prices drop last week
25 January 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, decreased
for some products during Jan. 15 – 22, 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) inched up 1% w/w USD
560/t on Jan. 22, 51% above their 3Q20 high of USD 370/t on Sept. 18.
Billet prices plunged 4% w/w to USD 563/t on Jan. 22,
36% above their 3Q20 high of USD 415/t on Sept. 11.
HRC prices dropped 3% w/w to USD 755/t on Jan. 22, 50%
above their 3Q20 high of USD 503/t on Sept. 11.
Metal Expert did not provide an update for slab
prices, which stood at USD 695/t on Jan. 15, 49% above their 3Q20 high of USD
465/t on Sept. 11.
A plunge in scrap prices on the Turkish market drove
billet prices down, according to Metal Expert. The decrease in HRC prices was
in part due to Chinese suppliers offering lower prices than CIS exporters,
Metal Expert said.
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: Steel
prices might fall further in the coming weeks because the Turkish scrap market
could continue to weaken.
We maintain our neutral view on METINV bonds.
