Railway product prices plunge 11% m/m in April for Ukraine exports
22 June 2020
Ukraine export prices for railway products sold mostly
by Ukraine’s largest producer Interpipe (INTHOL) were USD 1,581/t in April, 11%
lower m/m and 4% less yoy, according to our analysis of State Statistics data
released on June 19.
Recall, these prices fell 4% m/m in January after rising
for more than a year, and lost a further 10% m/m in February and 3% m/m in March.
Dmytro Khoroshun: The EBITDA
of Interpipe’s railway product segment likely peaked in 1Q20 at USD 70 mln and
will fall during the remainder of 2020 because of two factors. Firstly, the
fall in Ukraine’s railway product export prices might extend to as low as USD
1,200-1,400/t already this year because of the normalization of what was an
overheated market in Russia. Secondly, Russia reinstated the 34.22% duty on railway
wheel imports from Ukraine from June 2, which will further cut the
profitability of Interpipe’s sales of railway products.
