Metinvest steel prices mostly stable last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, were
mostly stable during July 23 – 30, according to Metal Expert, an industry
consultancy.

 

Billet prices were unchanged w/w at USD 645/t on July
30, 55% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices plunged 4% w/w to USD 795/t on July 30,
71% above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices were flat w/w at USD 925/t on July 30, 84%
above their 3Q20 high of USD 503/t on Sept. 11.

 

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 610/t on July 23, 65% above their 3Q20
high of USD 370/t on Sept. 18.

 

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: Steel prices
will likely decrease by the year’s end, we expect.

 

Metinvest’s monthly EBITDA will likely amount to at
least USD 400-500 mln in 2Q21 and in 3Q21 because of strong steel and iron ore
prices.

 

We maintain our neutral view on METINV bonds.