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. 17 – 24, 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) added 2% w/w to USD
498/t on Sept. 24, 22% below their 2Q21 high of USD 635/t on June 18.

Billet prices were flat w/w at USD 595/t on Sept. 24,
19% below their 2Q21 high of USD 735/t on May 14.

Slab prices plunged 7% w/w to USD 690/t on Sept. 24,
27% below their 2Q21 high of USD 950/t on May 28.

HRC prices slid 1% w/w to USD 835/t on Sept. 24, 24%
below their 2Q21 high of USD 1,095/t on May 21.

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.