Metinvest steel prices rose last week

Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, continued
their ascent during April 30 – May 7, according to Metal Expert, an industry
consultancy.

 

Billet prices skyrocketed 6% w/w to USD 653/t on May
7, 57% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices added 2% w/w to USD 928/t on May 7, 99%
above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices increased 1% w/w to USD 1,030/t on May 7,
105% 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 560/t on April 30, 51% 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: The steel
prices will likely rise further in the coming weeks because of the early May
surge in iron ore and steel scrap prices at the global markets and in the steel
prices in China.

 

However, we expect the prices to correct later in
2021, albeit from very high levels.

 

Metinvest’s monthly EBITDA will likely stay close to
and even exceed USD 400 mln in 1H21 because of strong steel and iron ore
prices.

 

We maintain our neutral view on METINV bonds.