Last week, metallurgical enterprises reduced purchase prices for scrap metal by UAH 700 - to UAH 6800/mt. The profitability of scrap metal purchases has increased and is above the standard value. However, buyers intend to continue to cut prices.The prices of scrap collecting companies for grade 3 scrap in the regions automatically decreased by UAH 1000 to the level of UAH 6.27-6.32 thousand per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to metallurgical plants
Scrap deliveries to metallurgical plants (February 11-17) increased to 66.6 thousand tons. For comparison: in the previous week (February 4-10) there were 66.2 thousand tons. The demand for scrap was 60.6 thousand tons. The level of meeting the needs of metal plants for scrap last week was 111%.
Remains in ports
Scrap stocks in ports remained at the level of the previous week - 1.3 thousand tons.
Dynamics of steel smelting
Steel production for February 11-17 increased to 397 thousand tons. For comparison: in the previous week (February 4-10) there were 384 thousand tons.
Warehouse stocks of scrap at metallurgical enterprises
Remains of scrap in warehouses of metallurgical plants increased to 212 thousand tons. For comparison: in the previous week there were 203 thousand tons. Inventories in working days are 24 days, which is significantly higher than the standard value.
Domestic scrap price forecast
In the coming weeks, metal plants on the domestic market of Ukraine will keep prices unchanged. The desire of buyers to reduce prices is restrained by a significant drop in scrap procurement and an increase in prices on external routes. The forecasted average price next week is UAH 6800/mt.
Source: "Ukrpromvneshexpertiza"
