30 August 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, extended
their drop during Aug. 20 – 27, 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) plunged 11% w/w to
USD 500/t on Aug. 27, 21% below their 2Q21 high of USD 635/t on June 18.
Billet prices dropped 2% w/w to USD 595/t on Aug. 27,
19% below their 2Q21 high of USD 735/t on May 14.
Slab prices lost 3% w/w to USD 775/t on Aug. 27, 18%
below their 2Q21 high of USD 950/t on May 28.
HRC prices retreated 2% w/w to USD 878/t on Aug. 27,
20% below their 2Q21 high of USD 1,095/t on May 21.
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 next few weeks, but we do not exclude a
further drop later in 2021.
Metinvest’s monthly EBITDA will likely amount to at
least USD 400-500 mln in 2Q21 and in 3Q21 because of the high steel and iron
ore prices.