Metinvest steel prices rebounded last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, rebounded
during Feb. 5-12, 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) were unchanged w/w
at USD 505/t on Feb. 12, 36% above their 3Q20 high of USD 370/t on Sept. 18.

Billet prices inched up 1% w/w to USD 540/t on Feb.
12, 30% above their 3Q20 high of USD 415/t on Sept. 11.

Slab prices added 3% w/w to USD 640/t on Feb. 12, 38%
above their 3Q20 high of USD 465/t on Sept. 11.

HRC prices increased 3% w/w to USD 708/t on Feb. 12,
41% above their 3Q20 high of USD 503/t on Sept. 11.

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: Ukrainian
steel prices might find support in the short term after their recent 10-12%
fall from January’s highs. Among the reasons to expect price stabilization are the
steadying of the Turkish steel scrap market and China’s return from holidays
later this week. However, we continue to expect steel prices to correct during
2021.

We maintain our neutral view on METINV bonds.