Metinvest steel prices inch up last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, inched up
during Oct. 23 – 30, 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 353/t on Oct. 30, 5% below their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices rose 1% w/w to USD 410/t on Oct. 30, 1%
below their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices were flat w/w at USD 445/t on Oct. 30, 4%
below their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices inched up 1% w/w to USD 490/t on Oct. 30,
2% below 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: Ukraine’s
FOB iron and steel prices had rebounded strongly in May-September, and have so
far dropped only slightly since mid-September. Therefore, we expect the monthly
EBITDA of Metinvest’s metallurgical segment (including JVs) in
September-November to be at least at its July-August level of USD 60-90 mln.

 

However, the strong iron ore prices at the global
markets, which were one of the reasons for the recent rebound in iron and steel
prices, will keep the profitability of Metinvest’s metallurgical division
subdued throughout 2H20.

 

We maintain our neutral view on METINV bonds.