Railway product prices rebound 4% m/m in May for Ukraine exports

Ukraine export prices for railway products sold mostly
by Ukraine’s largest producer Interpipe (INTHOL) were USD 1,640/t in May, 4%
higher m/m and 2% less yoy, according to our analysis of State Statistics data
released on July 20.

Recall, these prices fell 4% m/m in January after rising
for more than a year, and lost a further 10% m/m in February, 3% m/m in March and 11% m/m in April.

Dmytro Khoroshun: The downward
trend in railway product prices is likely to continue after the temporary May
rebound. This, together with June’s plunge in Interpipe sales
volumes of these products, will result in the quarterly
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.