Railway product prices rebound 4% m/m in May for Ukraine exports

Ukraine export prices for railway products sold mostly by Ukraine’s largest producer Interpipe (INTHOL) were USD 1,640/t in May, 4% higher m/m and 2% less yoy, according to our analysis of State Statistics data released on July 20.

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, 3% m/m in March and 11% m/m in April.

Dmytro Khoroshun: The downward trend in railway product prices is likely to continue after the temporary May rebound. This, together with June’s plunge in Interpipe sales volumes of these products, will result in the quarterly 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.