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, rose during April 9
– 16, 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) rose 2% w/w to USD
546/t on April 16, 48% above their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices added 3% w/w to USD 598/t on April 16,
44% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices skyrocketed 7% w/w to USD 855/t on April
16, 84% above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices jumped 5% w/w to USD 985/t on April 16, 96%
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: Steel
prices might find further support in the short term due to China’s apparent
drive to limit steel production. However, we expect the prices to correct later
in 2021.

 

Metinvest’s monthly EBITDA will likely stay close to
and even exceed USD 400 mln in 1Q21 and likely in 2Q21 because of strong steel
and iron ore prices.

 

We maintain our neutral view on METINV bonds.