Metinvest steel prices mostly stable last week
11 January 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, remained
near their highs during Jan. 1 – 8, according to Metal Expert, an industry consultancy.
Billet prices slid 3% w/w to USD 585/t on Jan. 8, 41%
above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices were unchanged w/w at USD 685/t on Jan. 8,
47% above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices were flat w/w at USD 723/t on Jan. 8, 44%
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 495/t on Dec. 25, 34% above their 3Q20
high of USD 370/t on Sept. 18.
The trading activity was low due to the long holidays
in Ukraine, while mixed forecasts for the Turkish scrap market drove billet
prices lower, according to Metal Expert.
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: The high
steel prices will boost the EBITDA of Metinvest’s metallurgical segment in
1Q21. Furthermore, the EBITDA of Metinvest’s mining segment will also rise
because of the recent surge in iron ore prices at the global markets.
We maintain our neutral view on METINV bonds.
