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 March 26 – April 2, 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 at USD
538/t on April 2, 45% above their 3Q20 high of USD 370/t on Sept. 18.

 

Billet prices inched up 1% w/w to USD 565/t on April
2, 36% above their 3Q20 high of USD 415/t on Sept. 11.

 

Slab prices soared 7% w/w to USD 790/t on April 2, 70%
above their 3Q20 high of USD 465/t on Sept. 11.

 

HRC prices skyrocketed 7% w/w to USD 900/t on April 2,
79% 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: The
seasonal pickup in demand and China’s apparent drive to limit steel production
are supporting the steel prices at the global markets. 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.