Railway product prices drop 4% m/m in July for Ukraine exports

Ukraine export prices for railway products sold mostly
by Ukraine’s largest producer Interpipe (INTHOL) were USD 1,397/t in July, 4%
lower m/m and 24% less yoy, according to our analysis of State Statistics data
released on Sept. 21.

The July prices are 35% below their December peak and
26% below their 1Q20 average level, according to Concorde Capital calculations.

Dmytro Khoroshun: The recent downward trend in railway product prices might result in
the 3Q20 EBITDA (before reallocation from its steel segment) of Interpipe’s
railway product segment plunging from its 1Q20 USD 70 mln level by as much as
50% or even more.