Metinvest steel prices skyrocket in November-December

Ukraine FOB prices for the types of iron and steel products exported by Metinvest (METINV), Ukraine’s largest producer, skyrocketed during Nov. 13 – Jan. 1, 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) shot up 35% to USD 495/t on Jan. 1 from Nov. 13, 34% above their 3Q20 high of USD 370/t on Sept. 18.

Billet prices soared by 40% to USD 600/t on Jan. 1, 45% above their 3Q20 high of USD 415/t on Sept. 11.

Slab prices went through the roof by 50% to USD 685/t on Jan. 1, 47% above their 3Q20 high of USD 465/t on Sept. 11.

HRC prices surged by 39% to USD 723/t on Jan. 1, 44% above their 3Q20 high of USD 503/t on Sept. 11.

The Turkish market, where the prices of both steel scrap and steel products were rising sharply during the same period, was the main driver for the surge in Ukrainian export prices during November-December, according to Metal Expert.

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: This surge in steel prices during the last seven weeks is unprecedented for recent years, and is positive for Metinvest’s 1Q21 financial performance.

We maintain our neutral view on METINV bonds.