Last week, metallurgical enterprises increased purchase prices for scrap by UAH 890 – up to UAH 7890/mt due to the rapid growth in the cost of billet and rolled products in external directions.
The profitability of scrap metal purchases is above the standard value.
The prices of scrap collecting companies for grade 3 scrap in the regions were at the level of 6.46-6.51 thousand UAH per ton. The upper border of the price range prevails in the southeastern regions of the country.
Supplies to steel plants
Scrap deliveries to metallurgical plants (May 13-19) increased to 68.3 thousand tons. Last week (May 6-12) there were 57.7 thousand tons. The demand for scrap was 58.7 thousand tons. metal plants in scrap last week amounted to 117.4%.
Remains in ports
Scrap stocks in ports decreased to 1 thousand tons. Last week there were 1.4 thousand tons.
Smelt steel
Steel production for May 13-19 increased to 425 thousand tons. Last week (May 6-12) it was 422 thousand tons.
Scrap stocks at metallurgical enterprises
Remains of scrap in the warehouses of metallurgical plants increased to 273 thousand tons. Last week it was 262 thousand tons. Inventories in working days are 33 days, which is three times higher than the standard value. The highest stocks at Dneprospetsstal are 100 days. The lowest – at Azovstal – 12 days.
Domestic price forecast
The rapid rise in export prices for rolled metal and scrap metal will force the factories to further increase prices on the domestic market. The forecast average price for the current week is UAH 8000/mt.
Source: "Ukrpromvneshexpertiza"
