Metinvest steel prices unchanged last week
4 January 2022
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, dropped
again during Dec. 24 – 31, 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) were unchanged w/w
at USD 503/t on Dec. 31, 21% below their 2Q21 high of USD 635/t on June 18.
Billet prices were flat w/w at USD 588/t on Dec. 31,
20% below their 2Q21 high of USD 735/t on May 14.
Slab prices remained at USD 620/t on Dec. 31, 35%
below their 2Q21 high of USD 950/t on May 28.
HRC prices were unchanged w/w at USD 775/t on Dec. 31,
29% below their 2Q21 high of USD 1,095/t on May 21.
Dmytro Khoroshun: Ukraine FOB
steel prices will drop further in the next few months, we expect.
Potential stimulus moves from China might support the
markets if directed in part toward steel-consuming industries and if net steel
exports from China do not increase.
Metinvest’s monthly EBITDA will likely amount to USD
350-550 mln in 4Q21 because of the recent drops in steel and iron ore prices.
We maintain our neutral view on METINV bonds.
