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
mostly stable during Nov. 12 – 19, 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) dropped 2% w/w to
USD 545/t on Nov. 19, 14% below their 2Q21 high of USD 635/t on June 18.

Billet prices were unchanged w/w at USD 620/t on Nov.
19, 16% below their 2Q21 high of USD 735/t on May 14.

Slab prices were flat w/w at USD 730/t on Nov. 19, 23%
below their 2Q21 high of USD 950/t on May 28.

HRC prices were stable w/w at USD 835/t on Nov. 19,
24% below their 2Q21 high of USD 1,095/t on May 21.

Dmytro Khoroshun: Ukraine FOB
steel prices will drop further in the next few months, we expect.

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

We maintain our neutral view on METINV bonds.