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 July 30 – Aug. 6, 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 8% w/w to
USD 563/t on Aug. 6, 52% above their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices slid 1% w/w to USD 640/t on Aug. 6, 54%
above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab were flat w/w at USD 795/t on Aug. 6, 71% above
their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices were unchanged w/w at USD 925/t on Aug. 6,
84% above their 3Q20 high of USD 503/t on Sept. 11.

 

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: Metinvest’s
monthly EBITDA will likely amount to at least USD 400-500 mln in 2Q21 and in
3Q21 because of strong steel and iron ore prices.

 

Nevertheless, iron ore prices at the global markets
have plunged since mid-July, and we expect steel prices to eventually drop as
well later in 2021.

 

We maintain our neutral view on METINV bonds.