Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rose
during April 2 – 9, according to Metal Expert, an industry consultancy.
Billet prices added 2% w/w to USD 578/t on April 9,
39% above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices inched up 1% w/w to USD 798/t on April 9,
72% above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices jumped 4% w/w to USD 935/t on April 9, 86%
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 538/t on April 2, 45% 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: Further
increases are likely in the short term due to China’s apparent drive to limit
steel production. However, we expect the prices to correct later in 2021.
Metinvest’s monthly EBITDA will likely stay close to
and even exceed USD 400 mln in 1Q21 and likely in 2Q21 because of strong steel
and iron ore prices.
We maintain our neutral view on METINV bonds.