Metinvest steel prices stable last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, were
unchanged during April 16 – 23, according to Metal Expert, an industry
consultancy.

 

Billet prices were flat w/w at USD 598/t on April 23,
44% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices were unchanged w/w at USD 855/t on April
23, 84% above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices were stable w/w at USD 985/t on April 23,
96% 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 546/t on April 16, 48% 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: Steel
prices might rise further in the weeks ahead as steel and iron ore futures in
China continue rising.

 

The prices might find further support 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.