Metinvest steel prices rose last week
Ukraine FOB prices for the types of iron and steel products exported by Metinvest (METINV), Ukraine’s largest producer, rose during Jan. 14 – 21, 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) added 4% w/w to USD 513/t on Jan. 21, 19% below their 2Q21 high of USD 635/t on June 18.
Billet prices jumped 4% w/w to USD 635/t on Jan. 21, 14% below their 2Q21 high of USD 735/t on May 14.
Slab prices increased 2% w/w to USD 630/t on Jan. 21, 34% below their 2Q21 high of USD 950/t on May 28.
HRC prices inched up 1% w/w to USD 785/t on Jan. 21, 28% below their 2Q21 high of USD 1,095/t on May 21.
Dmytro Khoroshun: High costs are supporting steel prices, but it is not yet certain that a bottom has been reached.
Potential stimulus moves from China might support the markets if directed in part toward steel-consuming industries and if net steel exports from China do not increase.
Metinvest’s monthly EBITDA will amount to USD 300-500 mln in November-December, we expect.
We maintain our neutral view on METINV bonds.