Purchase prices for scrap metal did not change last week. The average market purchase price of metallurgical enterprises from October 1 to October 8 was UAH 5700/mt. The current price is quite satisfactory for buyers. The profitability of purchasing scrap metal remains above the standard value.Supplies to metallurgical plants
Scrap deliveries to metal plants decreased to 66.2 thousand tons, which is 1.3 thousand tons or 1.7% less than a week earlier.
Remains in the ports of Ukraine
Scrap stocks in ports rose to 1.6 thousand tons against 1.5 thousand tons in the previous week.
Dynamics of steel smelting
Steel production fell to 401 thousand tons, which is 18 thousand tons or 4.3% less than a week earlier.
Warehouse stocks of scrap at metallurgical enterprises
Scrap supplies to metallurgical enterprises amounted to 66.2 thousand tons, with a demand of 60.9 thousand tons. The level of meeting the needs of metal plants for scrap last week amounted to 109.6%, which allowed them to increase their stocks. Remains of scrap in the warehouses of metallurgical plants increased to 116 thousand tons against 110 thousand tons a week earlier. Inventories in working days are 13 days, which is slightly above the standard value.
Domestic scrap price forecast
The downward trend will dominate on the domestic market due to weakening demand for Ukrainian rolled products in foreign markets and high stocks at steelmakers. The forecast average price next week is UAH 5700/mt.
Source: "Ukrpromvneshexpertiza"
