Metinvest steel prices dropped last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, dropped
during Nov. 19 – 26, according to Metal Expert, an industry consultancy.

Billet prices dropped 2% w/w to USD 610/t on Nov. 26,
17% below their 2Q21 high of USD 735/t on May 14.

Slab prices plunged 4% w/w to USD 700/t on Nov. 26,
26% below their 2Q21 high of USD 950/t on May 28.

HRC prices were stable w/w at USD 835/t on Nov. 26,
24% below their 2Q21 high of USD 1,095/t on May 21.

Metal Expert did not provide an update for pig iron
prices (Metal Expert’s FOB Black Sea assessment for a group of countries that
includes Ukraine), which stood at USD 545/t on Nov. 19, 14% below their 2Q21
high of USD 635/t on June 18.

Dmytro Khoroshun: Ukraine FOB
steel prices will drop further in the next few months, but potential stimulus
moves from China would support the markets, 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.