Metinvest steel product prices adjusted further down

Ukraine FOB prices for the types of steel products
exported by Metinvest (METINV), Ukraine’s largest producer, were adjusted
further down in the final assessment for Apr. 3 by Metal Expert, an industry consultancy,
from its early estimate.

Slab prices were adjusted to USD 320/t for Apr. 3, 2%
lower than the early assessment of USD 328/t. This is 6% lower w/w and 4% below
their recent low of USD 335/t on Nov. 1.

Billet prices were adjusted to USD 325/t for Apr. 3,
2% lower than the early assessment of USD 333/t. This is 4% lower w/w and 7%
below their recent low of USD 350/t on Oct. 4.

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 current
depression in semi-finished product prices, especially for slabs, is clearly
negative for Metinvest.

We maintain our negative view on METINV bonds.