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, continued
dropping during Aug. 6 – 13, according to Metal Expert, an industry
consultancy.

 

Billet prices dropped 2% w/w to USD 630/t on Aug. 13,
52% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices were flat w/w at USD 795/t on Aug. 13, 71%
above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices slid 1% w/w to USD 915/t on Aug. 13, 82%
above their 3Q20 high of USD 503/t on Sept. 11.

 

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 563/t on Aug. 6, 52% above their 3Q20
high of USD 370/t on Sept. 18.

 

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: Decreases
of steel production in China in July and in the next few months might support
steel prices in the short term, but we expect them to drop later in 2021.

 

Metinvest’s monthly EBITDA will likely amount to at
least USD 400-500 mln in 2Q21 and in 3Q21 because of strong steel and iron ore
prices.

 

We maintain our neutral view on METINV bonds.