Metinvest steel prices mixed last week
13 July 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, showed
mixed dynamics during July 2 – 9, 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 flat w/w at USD
610/t on July 9, 65% above their 3Q20 high of USD 370/t on Sept. 18.
Billet prices gained 3% w/w to USD 645/t on July 9,
55% above their 3Q20 high of USD 415/t on Sept. 11.
HRC prices plunged 4% w/w to USD 935/t on July 9, 86%
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 870/t on July 2, 87% 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: 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 and possibly in 3Q21 because of strong steel and
iron ore prices.
We maintain our neutral view on METINV bonds.
