Metinvest steel prices dropped last week
30 June 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, dropped
during June 18 – 25, 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) dropped 4% w/w to
USD 610/t on June 25, 65% above their 3Q20 high of USD 370/t on Sept. 18.
Billet prices lost 2% w/w to USD 640/t on June 25, 54%
above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices were stable w/w at USD 915/t on June 25,
97% above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices retreated 3% w/w to USD 995/t on June 25,
98% above their 3Q20 high of USD 503/t on Sept. 11.
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: Steel prices
might find some ground in the next few weeks after the introduction of an
export tax by Russia, but will decrease by the year’s end, we continue to
expect.
Metinvest’s monthly EBITDA will likely amount to at
least USD 400-500 mln in 2Q21 because of strong steel and iron ore prices.
We maintain our neutral view on METINV bonds.
