Metinvest steel product prices inch up slightly

Ukraine FOB prices for the types of steel products
exported by Metinvest (METINV), Ukraine’s largest producer, remained depressed
during May 8-15, according to Metal Expert, an industry consultancy.

Billet prices inched up 1% w/w to USD 345/t on May 15,
1% below their 2019 low of USD 350/t on Oct. 4 and 16% below their 1Q20 high of
USD 410/t on Jan. 10.

Slab prices added 2% w/w to USD 330/t on May 15, 1%
below their 2019 low of USD 335/t on Nov. 1 and 21% below their 1Q20 high of
USD 420/t on Jan. 17.

HRC prices gained 1% w/w to USD 355/t on May 15, 3%
below their 2019 low of USD 365/t on Oct. 25 and 26% below their 1Q20 high of
USD 478/t on Feb. 21.

Metal Expert did not provide a price assessment for
pig iron for May 15. Metal Expert’s pig iron prices (FOB Black Sea for a group
of countries that includes Ukraine) were at USD 283/t on May 8, 1% below their
2019 low of USD 285/t on Nov. 1 and 15% below their 1Q20 high of USD 333/t on
Mar. 20.

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: Metinvest’s
steel profitability is likely to suffer starting from May because of the
current depression in steel prices. The holding’s overall profitability will be
supported by its mining business because iron ore prices have been, so far,
remarkably stable at high levels.

We maintain our negative view on METINV bonds.