Metinvest steel prices rose last week
24 January 2022
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rose
during Jan. 14 – 21, 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 4% w/w to USD
513/t on Jan. 21, 19% below their 2Q21 high of USD 635/t on June 18.
Billet prices jumped 4% w/w to USD 635/t on Jan. 21,
14% below their 2Q21 high of USD 735/t on May 14.
Slab prices increased 2% w/w to USD 630/t on Jan. 21,
34% below their 2Q21 high of USD 950/t on May 28.
HRC prices inched up 1% w/w to USD 785/t on Jan. 21,
28% below their 2Q21 high of USD 1,095/t on May 21.
Dmytro Khoroshun: High costs
are supporting steel prices, but it is not yet certain that a bottom has been
reached.
Potential stimulus moves from China might support the
markets if directed in part toward steel-consuming industries and if net steel
exports from China do not increase.
Metinvest’s monthly EBITDA will amount to USD 300-500
mln in November-December, we expect.
We maintain our neutral view on METINV bonds.
