Metinvest steel prices mixed last week
15 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 5 – 12, according to Metal Expert, an industry
consultancy.
Billet prices slid 0.4% w/w to USD 583/t on March 12,
40% above their 3Q20 high of USD 415/t on Sept. 11.
HRC prices skyrocketed 7% w/w to USD 820/t on March
12, 63% 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 505/t on March 5, 36% above their 3Q20 high of USD
370/t on Sept. 18.
Metal Expert also did not provide an update for slab
prices, which stood at USD 678/t on March 5, 46% 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.
We maintain our neutral view on METINV bonds.
Dmytro Khoroshun: The prices
will stop rising and stabilize in the next few weeks at the achieved high
levels and correct later in 2021, we continue to expect.
Metinvest’s monthly EBITDA will likely exceed USD
400 mln in 1Q21 and possibly in April-May because of strong steel and iron ore
prices.
