Metinvest steel prices mixed last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, showed
mixed dynamics during Oct. 29 – Nov 5, 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) added 2% w/w to USD
555/t on Nov. 5, 13% below their 2Q21 high of USD 635/t on June 18.

Billet prices lost 3% w/w to USD 630/t on Nov. 5, 14%
below their 2Q21 high of USD 735/t on May 14.

Slab prices were flat w/w at USD 730/t on Nov. 5, 23%
below their 2Q21 high of USD 950/t on May 28.

HRC prices dropped 2% w/w to USD 845/t on Nov. 5, 23%
below their 2Q21 high of USD 1,095/t on May 21.

Dmytro Khoroshun: Ukraine FOB
steel prices will likely drop in the next few months rather than increase, we
think.

Metinvest’s monthly EBITDA will likely amount to at
least USD 500-700 mln in September but should drop in 4Q21 because of the
recent drops in steel and iron ore prices.

We maintain our neutral view on METINV bonds.