Metinvest steel prices dropped last week
5 July 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, dropped
during June 25 – July 2, according to Metal Expert, an industry consultancy.
Billet prices lost 2% w/w to USD 625/t on July 2, 51%
above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices plunged 5% w/w to USD 870/t on July 2, 87%
above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices retreated 3% w/w to USD 970/t on July 2,
93% above their 3Q20 high of USD 503/t on Sept. 11.
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 610/t on June 25, 65% above their 3Q20
high of USD 370/t on Sept. 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: Steel
prices will be volatile in the short term and will decrease by the year’s end,
we continue to expect.
Metinvest’s monthly EBITDA will likely amount to at
least USD 400-500 mln in 2Q21 because of strong steel and iron ore prices.
We maintain our neutral view on METINV bonds.
