Metinvest steel prices mixed last week

Ukraine FOB prices
for the types of iron and steel products exported by Metinvest (METINV),
Ukraine’s largest producer, showed mixed dynamics during Sept. 3 – 10, 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 2% w/w to USD 490/t on Sept. 10, 23% below their 2Q21 high of
USD 635/t on June 18.

 

Billet prices inched
up 1% w/w to USD 598/t on Sept. 10, 19% below their 2Q21 high of USD 735/t on
May 14.

 

Slab prices lost 1%
w/w to USD 750/t on Sept. 10, 21% below their 2Q21 high of USD 950/t on May 28.

 

HRC prices slid 0.3%
w/w to USD 865/t on Sept. 10, 21% below their 2Q21 high of USD 1,095/t on May
21.

 

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: 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.