Metinvest steel prices mixed last week
4 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 Sept. 24 – Oct. 1, according to Metal Expert, an industry
consultancy.
Billet prices inched up 1% w/w to USD 600/t on Oct. 1,
18% below their 2Q21 high of USD 735/t on May 14.
Slab prices slid 1% w/w to USD 680/t on Oct. 1, 28%
below their 2Q21 high of USD 950/t on May 28.
HRC prices plunged 4% w/w to USD 805/t on Oct. 1, 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.
