Metinvest steel prices skyrocket in November-December
4 January 2021
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer,
skyrocketed during Nov. 13 – Jan. 1, 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) shot up 35% to USD
495/t on Jan. 1 from Nov. 13, 34% above their 3Q20 high of USD 370/t on Sept.
18.
Billet prices soared by 40% to USD 600/t on Jan. 1,
45% above their 3Q20 high of USD 415/t on Sept. 11.
Slab prices went through the roof by 50% to USD 685/t
on Jan. 1, 47% above their 3Q20 high of USD 465/t on Sept. 11.
HRC prices surged by 39% to USD 723/t on Jan. 1, 44%
above their 3Q20 high of USD 503/t on Sept. 11.
The Turkish market, where the prices of both steel
scrap and steel products were rising sharply during the same period, was the
main driver for the surge in Ukrainian export prices during November-December,
according to Metal Expert.
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: This surge
in steel prices during the last seven weeks is unprecedented for recent years,
and is positive for Metinvest’s 1Q21 financial performance.
We maintain our neutral view on METINV bonds.
