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. 11 – 18, 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) jumped 6% w/w to USD
370/t on Sept. 18, 11% above their 1Q20 high of USD 333/t on Mar. 20.

 

Billet prices slid 1% w/w to USD 413/t on Sept. 18, 1%
above their 1Q20 high of USD 410/t on Jan. 10.

 

Slab prices lost 1% w/w to USD 460/t on Sept. 18, 10%
above their 1Q20 high of USD 420/t on Jan. 17.

 

HRC prices slid 0.5% w/w to USD 500/t on Sept. 18, 5%
above their 1Q20 high of USD 478/t on Feb. 21.

 

The improvement in buyer interest from the U.S. drove
the pig iron prices higher, Metal Expert noted.

 

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’s
FOB iron and steel prices rebounded strongly in May-September. Therefore, we
expect the monthly EBITDA of Metinvest’s metallurgical segment (including JVs)
to remain depressed in July, in line with May’s USD 39 mln and June’s USD 24
mln (adjusted for one-offs). But then we expect it to stabilize and possibly
rebound strongly in August-October.

 

However, the strong iron ore prices at the global
markets, which were one of the reasons for the recent rebound in iron and steel
prices, will keep the profitability of Metinvest’s metallurgical division
subdued throughout 2H20.