Page 70 - UKRRptJun20

14% qoq gain in hot-rolled plates output to 818 kt. The qoq jump in HRC production was due to the launch of the upgraded Mill 1700 at Ilyich Steel, Metinvest said. Total coke production gained 7% qoq to 1.122 mmt in 1Q20, while merchant coke output slid 3% qoq to 430 kt.
Ukraine FOB prices for the types of steel products exported by Metinvest​, Ukraine’s largest producer, remained depressed during May 8-15, ​according to Metal Expert, an industry consultancy.​ ​Billet prices inched up 1% w/w to $345/t on May 15, 1% below their 2019 low of $350/t on October 4 and 16% below their 1Q20 high of $410/t on January 10.​ ​Slab prices added 2% w/w to $330/t on May 15, 1% below their 2019 low of $335/t on November 1 and 21% below their 1Q20 high of $420/t on January 17.​ ​HRC prices gained 1% w/w to $355/t on May 15, 3% below their 2019 low of $365/t on October 25 and 26% below their 1Q20 high of $478/t on February 21.​ ​Metal Expert did not provide a price assessment for pig iron for May 15. Metal Expert’s pig iron prices (FOB Black Sea for a group of countries that includes Ukraine) were at $283/t on May 8, 1% below their 2019 low of $285/t on November 1 and 15% below their 1Q20 high of $333/t on March 20.​ ​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.
● Interpipe
Interpipe NTRP, a subsidiary of Ukraine’s largest pipe and railway wheel producer Interpipe boosted its EBITDA 98% y/y to $64.0mn in 1Q20​, according to the company’s quarterly financial report published on April 30. The plant’s revenue slid 0.5% y/y to $124.4mn in 1Q20.​ ​The prices for railway wheels were 2,050 $/t in 1Q20, which is 3% higher than the prices for 3Q19, according to Concorde Capital's analysis of Interpipe NTRP financial data.
Pipe sales volume at Ukraine’s largest producer​ ​Interpipe​ was 29.3 kt in April, a 35.2% m/m fall​, according to the company’s monthly operational report for April released on May 18. Railway product sales slid 3.4% m/m to 17.7 kt, while external billet sales plunged 62.7% m/m to 2.0 kt. Total sales volume dropped 29.0% m/m to 49.1 kt.​ ​The m/m plunge in pipe sales volume in April was driven by line pipes (-30% m/m to 18.1 kt), OCTG pipes (-46% m/m to 6.2 kt) and welded pipes (-40% to 3.8 kt).​ ​The m/m drop in railway product sales was driven by sales of wheels (-2% m/m to 15.6 kt) and wheelsets (-30% m/m to 1.5 kt), which was partially offset by an increase in sales of tyres (0.3 kt in April after zero in March).​ ​During 4M20, Interpipe’s pipe sales dropped 31.9% y/y to 141.7 kt, driven by a 42.4% plunge for OCTG pipes to 36.4 kt, a 53.6% drop for welded pipes to 19.2 kt, and a 13.4% drop for line pipes to 80.7 kt. Railway product sales in 4M20 jumped 20.9% y/y to 75.8 kt, driven mostly by a 19% rise for wheels to 67.1 kt and a 64% jump for wheelsets to 6.9 kt.​ ​Interpipe's share of pipe sales in Ukraine in 4M20 dropped 6pp from 2019 to 19%, and the share of sales in the Americas plunged 14pp to 10%. At the same time, Europe's share in pipe sales gained 10pp to 34%, and the share of MENA rose 7pp to 22%. The share of CIS countries in 4M20 rose 2pp to 12%.​ ​The share of railway product sales in Ukraine in 4M20 dropped 5pp from 2019 to 17%, while the share of sales to Europe gained 5pp to 31% and the share of sales to CIS countries slid 1pp to 44%.​ ​Regarding the production volumes, which might be indicative of sales volumes in future months, Interpipe’s production of pipes slid 6.6% m/m to 40.4 kt in April, while railway product output dropped 8.4% m/m to 17.4 kt. Steel production plunged 30.4% m/m to 54.2 kt.
70​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com