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
again during Dec. 3 – 10, 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) dropped 2% w/w to
USD 515/t on Dec. 10, 19% below their 2Q21 high of USD 635/t on June 18.

Billet prices lost 2% w/w to USD 595/t on Dec. 10, 19%
below their 2Q21 high of USD 735/t on May 14.

Slab prices plunged 10% w/w to USD 625/t on Dec. 10,
34% below their 2Q21 high of USD 950/t on May 28.

HRC prices were unchanged w/w at USD 800/t on Dec. 10,
27% below their 2Q21 high of USD 1,095/t on May 21.

Dmytro Khoroshun: Ukraine FOB
steel prices will drop further in the next few months, we expect.

Potential stimulus moves from China might support the
markets if directed in part toward steel-consuming industries and if net steel
exports from China do not increase.

Metinvest’s monthly EBITDA will likely amount to USD
350-550 mln in 4Q21 because of the recent drops in steel and iron ore prices.