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 Sept. 10 – 17, 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) were flat w/w at USD
490/t on Sept. 17, 23% below their 2Q21 high of USD 635/t on June 18.

Billet prices slid 0.4% w/w to USD 595/t on Sept. 17,
19% below their 2Q21 high of USD 735/t on May 14.

Slab prices dropped 1% w/w to USD 740/t on Sept. 17,
22% below their 2Q21 high of USD 950/t on May 28.

HRC prices plunged 3% w/w to USD 840/t on Sept. 17,
23% below their 2Q21 high of USD 1,095/t on May 21.

Dmytro Khoroshun: Ukraine FOB
steel prices might stabilize in the short term following steel prices in China,
but we do not exclude a further drop later in 2021.

Metinvest’s monthly EBITDA will likely amount to at
least USD 500-700 mln in 3Q21 but should drop in 4Q21 because of the recent
drops in steel and iron ore prices.

We maintain our neutral view on METINV bonds.