Metinvest steel prices jumped last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rose fast
during May 7 – 14, 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) skyrocketed 13% w/w
to USD 633/t on May 14, 71% above their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices surged 13% w/w to USD 735/t on May 14,
77% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices added 2% w/w to USD 950/t on May 14, 104%
above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices jumped 6% w/w to USD 1,095/t on May 14,
118% 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: The steel
prices might be volatile in the coming weeks following the large ups and downs
in domestic Chinese steel prices. However, their levels should remain
exceptionally elevated in the short term, even though we expect a correction
later in 2021.

 

Metinvest’s monthly EBITDA will likely stay close
to the USD 400-500 mln range in 1H21 because of strong steel and iron ore
prices.

 

We maintain our neutral view on METINV bonds.