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 May 21 – 28, 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) were unchanged w/w
at USD 635/t on May 28, 72% above their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices plunged 6% w/w to USD 650/t on May 28,
57% above their 3Q20 high of USD 415/t on Sept. 11.

 

HRC prices slid 2% w/w to USD 1,075/t on May 28, 114%
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 950/t on May 14, 104% above their 3Q20 high of USD
465/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: We expect
steel price in the short term to be volatile yet exceptionally elevated, but to
correct later in 2021.

 

Metinvest’s monthly EBITDA will likely stay close to
the USD 400-500 mln range in 1H21 because of strong steel and iron ore prices.

 

We maintain our neutral view on METINV bonds.