Metinvest steel prices rose again last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rose again
during Oct. 15-22, 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) skyrocketed 10% w/w
to USD 545/t on Oct. 22, 14% below their 2Q21 high of USD 635/t on June 18.

Billet prices added 2% w/w to USD 670/t on Oct. 22, 9%
below their 2Q21 high of USD 735/t on May 14.

Slab prices soared 4% w/w to USD 730/t on Oct. 22, 23%
below their 2Q21 high of USD 950/t on May 28.

HRC surged 5% w/w to USD 865/t on Oct. 22, 21% below
their 2Q21 high of USD 1,095/t on May 21.

Dmytro Khoroshun: Ukraine FOB
steel prices are rebounding, but we do not exclude a further drop later.

Metinvest’s monthly EBITDA will likely amount to at least
USD 500-700 mln in 3Q21 but should drop in 4Q21 because of the recent drops in
steel and iron ore prices.

We maintain our neutral view on METINV bonds.