Railway product prices plunge 11% m/m in June for Ukraine exports

Ukraine export prices for railway products sold mostly
by Ukraine’s largest producer Interpipe (INTHOL) were USD 1,452/t in June, 11%
lower m/m and 17% less yoy, according to our analysis of State Statistics data
released on Aug. 19.

The June prices are 32% below their December peak and
23% below their 1Q20 average level, according to Concorde Capital calculations.

Recall, these prices started falling m/m in January
and were down 26% in April from their peak in December, but rebounded 4% m/m in May.

Dmytro Khoroshun: The recent downward trend in railway product prices might result in
the 3Q20 EBITDA (before reallocation from its steel segment) of Interpipe’s
railway product segment plunging from its 1Q20 USD 70 mln level by as much as
50% or even more.