Metinvest steel prices mixed last week
11 October 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, showed
mixed dynamics during Oct. 1-8, according to Metal Expert, an industry
consultancy.
Billet prices inched up 1% w/w to USD 605/t on Oct. 8,
18% below their 2Q21 high of USD 735/t on May 14.
Slab prices dropped 2% w/w to USD 665/t on Oct. 8, 30%
below their 2Q21 high of USD 950/t on May 28.
HRC prices were unchanged w/w at USD 805/t on Oct. 8,
26% below their 2Q21 high of USD 1,095/t on May 21.
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 498/t on Sept. 24, 22% below their 2Q21
high of USD 635/t on June 18.
Dmytro Khoroshun: Ukraine FOB
steel prices might stabilize in the short term, but we do not exclude a further
drop later.
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.
