17 January 2022
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, showed
mixed dynamics during Jan. 7 – 14, 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) slid 1% w/w to USD
495/t on Jan. 14, 22% below their 2Q21 high of USD 635/t on June 18.
Billet prices jumped 4% w/w to USD 610/t on Jan. 14,
17% below their 2Q21 high of USD 735/t on May 14.
Slab prices were unchanged w/w at USD 620/t on Jan.
14, 35% below their 2Q21 high of USD 950/t on May 28.
HRC prices were flat w/w at USD 775/t on Jan. 14, 29%
below their 2Q21 high of USD 1,095/t on May 21.
Dmytro Khoroshun: High
electricity costs were likely a factor behind the increase in the billet
prices.
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.