Metinvest steel prices mixed last week
29 March 2021
Ukraine FOB prices for the types of iron and steel products
exported by Metinvest (METINV), Ukraine’s largest producer, showed mixed
dynamics during March 19 – 26, according to Metal Expert, an industry consultancy.
Billet prices dropped 2% w/w to USD 560/t on March 26, 35%
above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices inched up 1% w/w to USD 740/t on March 26, 59%
above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices added 1% w/w to USD 845/t on March 26, 68% 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 525/t on March 19, 42% 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 might rise a bit further in
the coming weeks as the scrap prices in Turkey have apparently found a bottom
and the steel futures in China have reached their 1-year highs.
Metinvest’s monthly EBITDA will likely exceed USD 400 mln in
1Q21 and possibly in 2Q21 because of strong steel and iron ore prices.
However, we expect the prices to correct later in 2021.
We maintain our neutral view on METINV bonds.
