Metinvest steel prices were mixed last week
17 January 2022
Ukraine FOB prices for the types of iron and steel
products exported by Metinvest (METINV), Ukraine’s largest producer, showed
mixed dynamics during Jan. 7 – 14, 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) slid 1% w/w to USD
495/t on Jan. 14, 22% below their 2Q21 high of USD 635/t on June 18.
Billet prices jumped 4% w/w to USD 610/t on Jan. 14,
17% below their 2Q21 high of USD 735/t on May 14.
Slab prices were unchanged w/w at USD 620/t on Jan.
14, 35% below their 2Q21 high of USD 950/t on May 28.
HRC prices were flat w/w at USD 775/t on Jan. 14, 29%
below their 2Q21 high of USD 1,095/t on May 21.
Dmytro Khoroshun: High
electricity costs were likely a factor behind the increase in the billet
prices.
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 amount to USD 300-500
mln in November-December, we expect.
We maintain our neutral view on METINV bonds.
