31 January 2022
Ukraine FOB prices for the types of iron and steel products
exported by Metinvest (METINV), Ukraine’s largest producer, rose during Jan. 21
– 28, according to Metal Expert, an industry consultancy.
Billet prices inched up 1% w/w to USD 643/t on Jan.
28, 13% below their 2Q21 high of USD 735/t on May 14.
Slab prices jumped 6% w/w to USD 670/t on Jan. 28, 29%
below their 2Q21 high of USD 950/t on May 28.
HRC prices advanced 6% w/w to USD 833/t on Jan. 28,
24% below their 2Q21 high of USD 1,095/t on May 21.
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 513/t on Jan. 21, 19% below their 2Q21
high of USD 635/t on June 18.
Dmytro Khoroshun: Steel
prices might continue rebounding on high costs and expectations of economic
stimulus in China.
Metinvest’s monthly EBITDA will amount to USD 300-500
mln in November-December, we expect.
We maintain our neutral view on METINV bonds.